Transcription of A Guide to Venture Capital Term Sheets - BVCA
{{id}} {{{paragraph}}}
A Guide to Venture Capital Term Sheets3 Clements InnLondon WC2A 2 AZT 020-7025 2950F 020-7025 Sheets 1term Sheets 19/10/07 13:30:019/10/07 13:30:01 Original cover concept and guidelines by and produced by Jeffrey Pellin Sheets 2term Sheets 29/10/07 13:30:389/10/07 13:30:38 PageI Introduction 2II What is a Term sheet ? 4 III The investment process 6IV What terms may be included in a Term sheet ? 8 1. Type of share 8 2. Valuation and milestones 8 3. Dividend rights 9 4. Liquidation preference and deemed liquidation 10 5. Redemption 12 6. Conversion rights 12 7. Automatic conversion of share class/series 12 8. Anti-dilution (or price protection) 13 9. Founder shares 14 10. Pre-emption rights on new share issues 15 11. Right of first refusal, co-sale and tag along rights 15 12.
way of debt, but the majority of investments are made by way of a purchase of shares. This Guide deals only with the latter. The aim of this Guide is to provide those who are not familiar with the venture capital investment process with an outline of how investments can be structured, the terms and terminology typically used
Domain:
Source:
Link to this page:
Please notify us if you found a problem with this document:
{{id}} {{{paragraph}}}