Wednesday, February 6, 2008

Demystifying Term Sheets - 2

From the Connecticut Venture Group Workshop on Term Sheets, held Jan. 24, 2008 in Stamford, CT. -- Term sheets are essential documents for investors in non-public companies. You'll begin to understand why as you read what they include. Here are some of the things that they delinate:
  • Key players -- founders, issuers, purchasers, early investors
  • Investment amounts
  • Use of proceeds
  • Price and capitalization -- valuation
  • Closing date
  • Form of investment -- usually preferred stock

In the next blog, we'll discuss valuation and other topics.

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