Scribd Logo
Upload

Welcome to Scribd!

  • The Anatomy of A Term Sheet

    Uploaded by

    c.k.sathiish
    2 views1 page
    This document outlines the key components and terms that are typically included in a term sheet for an investment round. It includes sections on deal economics, deal structure, share classes, investor deal fees, existing capitalization, deal terms, binding terms, founder vesting, undertakings, investor consents, and optional terms. The document notes that while the terms in a term sheet are generally not legally binding, they set the tone for negotiations between the founders and investors.

    Original Description:

    Term sheet startup anatomy

    Original Title

    The Anatomy of a Term Sheet

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document outlines the key components and terms that are typically included in a term sheet for an investment round. It includes sections on deal economics, deal structure, share classes, investor deal fees, existing capitalization, deal terms, binding terms, founder vesting, undertakings, investor consents, and optional terms. The document notes that while the terms in a term sheet are generally not legally binding, they set the tone for negotiations between the founders and investors.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    2 views1 page

    The Anatomy of A Term Sheet

    Uploaded by

    c.k.sathiish
    This document outlines the key components and terms that are typically included in a term sheet for an investment round. It includes sections on deal economics, deal structure, share classes, investor deal fees, existing capitalization, deal terms, binding terms, founder vesting, undertakings, investor consents, and optional terms. The document notes that while the terms in a term sheet are generally not legally binding, they set the tone for negotiations between the founders and investors.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    S(EIS) INCOMPATIBLE

    THE ANATOMY SAFE Note


    Eva Dobrzanska
    +
    OF A TERM Convertible Loan
    Carry

    SHEET Valuation
    Priced Round

    Agile Investment
    Dividend Rights Pitch fees

    Amount Raised Capital Rights Success fee


    Advance Subscription
    Dilution Agreement (ASA) Voting Monitoring fees

    DEAL DEAL SHARE INVESTOR


    ECONOMICS STRUCTURE CLASSES DEAL FEES

    Confidentiality

    EXISTING BINDING
    CAP TABLE
    DEAL TERMS TERMS
    Exclusivity

    (Including existing Legal Costs


    warrants, options, CLN,
    ASA, and/or SAFEs)

    THE DEAL TERMS PRESENTED IN A TERM SHEET ARE GENERALLY NOT LEGALLY BINDING, BUT SET THE TONE FOR NEGOTIATIONS.

    LIQUIDATION
    FOUNDER VESTING UNDERTAKINGS INVESTOR CONSENTS PREFERENCE
    DRAG-ALONG

    Participating/ Non-participating
    OPTION POOL CREATION
    ANTI-DILUTION
    RESTRICTIVE
    LEAVER CLAUSES COVENANTS TAG-ALONG RIGHTS
    INFORMATION RIGHTS Weighted Average
    Fully Ratchet

    PRE-EMPTION RIGHTS WARRANTIES BOARD SEATS NO DILUTION

    OPTIONAL TERMS S/EIS INCOMPATIBLE


    MARKET STANDARD TERMS (INVESTOR FRIENDLY) (VERY INVESTOR FRIENDLY)

    You might also like