Playing Minesweeper With Term Sheets
Upcoming SlideShare
Loading in...5
×
 

Playing Minesweeper With Term Sheets

on

  • 2,241 views

 

Statistics

Views

Total Views
2,241
Views on SlideShare
2,056
Embed Views
185

Actions

Likes
0
Downloads
15
Comments
0

2 Embeds 185

http://midtownninja.com 184
http://www.slideshare.net 1

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Playing Minesweeper With Term Sheets Playing Minesweeper With Term Sheets Presentation Transcript

  • (aka “How to read the fine print when you raise venture money”) Vishy Venugopalan @midtownninja; http://midtownninja.com vishy.v@gmail.com
  • Get an idea 1. Get a team 2. Angel Funding ??? Hiring 3. Venture Capital Product dev & sales Profit 4.
  • A non-binding expression of firm interest A negotiable document Gets hairy and technical very quickly Let’s navigate this minefield together!
  • Pre-money vs post-money For early stage startups, this is hard BUT, important to get it right Single takeaway from this talk GET YOUR VALUATION RIGHT
  • The unit of ownership is a share Classes of shares: preferred vs common At exit: participating preferred Multiple preferences
  • New stock options are created for future hires Lowers effective pre-money valuation Example
  • Up round vs down round Down round: investors expect to be made whole Full-ratchet vs weighted average
  • Why do you need a VC? Money Expertise, Network Customers vs investors as sources of money Build a stable business or move to next thing? Remember: you can’t divorce your VC
  • Google “Fenwick & West term sheet survey” Venture Hacks: http://venturehacks.com/ Ask the VC: http://www.askthevc.com/blog
  • @midtownninja, http://midtownninja.com Currently: Analyst at Longworth Venture Partners In prior lives: software developer on Wall St, industry research analyst vishy.v@gmail.com