Techbiz Webinar delivered by Yvonne Ogunoiki

2. Venture
Termsheets
101
By Yvonne Ogunoiki for the
Eko Innovation Centre TechBiz Webinar Series

3. Congratulations !!!
So you got to Term sheet stage
What next?

4. Key Terms to Note
ECONOMICS
These are terms that
impact the pricing and
financials of the deal and
the venture
CONTROL
These are terms that
impact the governance
and other processes of
the venture

5. Economics - Valuation
▪ Impacts number of shares held by
both Investors and Founders
▪ Affects price paid per share
▪ May impact future funding rounds

6. Economics - Liquidation Preference
▪ Participating and Non-
participating features
▪ Advice to founders will be to
keep it simple and set good
precedents for future funding
rounds

7. Economics - Anti Dilution Provisions
▪ Full ratchet provisions
▪ Weighted average based
▪ Broad based and Narrow based
weighted average provisions

8. ▪ Optional or Mandatory?
▪ Triggers? (Date, Event or both?)
▪ Application to Unconverted Preference shares or Common?
▪ Price/Multiple?
▪ Consequences for failure to redeem?
Economics - Redemption Provisions

9. ▪ Drag Along - very important for
investors to facilitate exits
▪ Tag along – useful for minority
investors
▪ Keep an eye on the trigger
thresholds

10. Control – Vesting provisions
▪ Incentive for founders
▪ Be mindful of the cliff

11. Control – Protective Provisions/Reserved Matters

12. Q & A

13. CREDITS: This presentation
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