Facilitator Guide
Venture Capital Term Sheets
Facilitator Guide
Venture Capital Term Sheets
- Topic
- Venture Financing
- Duration
- Format
- Remote or in person
What’s Covered
- Main terms of venture capital term sheets
- Offering terms
- Economic rights
- Control and governance rights
- Vesting and employment
- Other terms commonly found in venture capital term sheets
Before the Session
Prepare the Attendees
Send the attendees an invitation for the session. Include this link, which has the videos and exercise they’ll need to prepare.
https://www.hotshotlegal.com/trainings/venture-capital-term-sheets/attendee
Prepare Yourself
Watch the videos and read the exercise so you’re familiar with the Hotshot material.
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Course
A discussion of the perspective of companies and investors on the main economic and control rights negotiated in a venture financing term sheet. Includes liquidation preference, anti-dilution provisions, board rights and employment matters.
During the Session
- What are some common offering terms?
- How is price per share calculated?
- How might valuation be expressed in a term sheet?
- What are some typical economic rights given to investors?
- What is a liquidation preference and is it better to be participating or non-participating from an investor’s point of view?
- What are some common control rights given to investors?
- What portions of a term sheet are usually binding on the parties?
- Which documents are usually referenced in the term sheet?
- Anecdotes and war stories (e.g., about a near-disaster or a tough negotiation)
- General practice tips (dos and don’ts)
- Firm-specific guidance and practices
After the Session
About Hotshot
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