Category: Preferred Stock

How To Tell If Your Startup Ecosystem Is Sick

I had an interesting lunch with some fellow lawyers the other day. I know, “interesting” and “lawyers” shouldn’t be used together in a sentence, but bear with me. We were discussing venture capital deal terms we had encountered with various startup financings we had worked on. One of the other lawyers mentioned that in two […]

Anatomy of a Term Sheet 6 — Protective Provisions

Welcome back to my series on the Anatomy of a Term Sheet. In this series, I am going through the model term sheet provided by the National Venture Capital Association, which you can find here. In previous posts, I discussed provisions such as pre-money valuation, the option pool issue, dividend terms, the liquidation preference, and […]

Anatomy of a Termsheet 5 — Voting Rights

Welcome back to the fifth installment of my series on the Anatomy of a Term Sheet. In this series, I am going through the model term sheet provided by the National Venture Capital Association, which you can find here. In previous posts, I discussed provisions such as pre-money valuation, the option pool issue, dividend terms, […]

Anatomy of a Term Sheet 4 – the Liquidation Preference

Welcome back to the fourth installment of my series on the Anatomy of a Term Sheet. I hope this series is helpful to startup founders, and helps break down some of the legalese in venture capital term sheets. In this series, I am going through the model term sheet provided by the National Venture Capital […]

Anatomy of a Term Sheet 3 – Dividends

Welcome to Part 3 of my series, Anatomy of a Term Sheet. If you are new to this series, I am analyzing in detail a Series A investment term sheet, using the model term sheet from the National Venture Capital Association. Part 1 of the series, which addressed some basic introductory terms, can be found […]