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.

Please send questions or comments to this blog or to my email: upstartwyn@gmail.com.