Category Archives

How To Tell If Your Startup Ecosystem Is Sick

I had an interesting lunch with some fellow lawyers the other day. I know, “interesting” and “lawyers” shouldn’t be used together in a sentence, but bear with me. We were discussing venture capital deal terms we had encountered with various startup financings we had worked on. One of the other Read More

Anatomy of a Term Sheet 6 — Protective Provisions

Welcome back to my series on the Anatomy of a Term Sheet. In this series, I am going through the model term sheet provided by the National Venture Capital Association, which you can find here. In previous posts, I discussed provisions such as pre-money valuation, the option pool issue, dividend Read More

Anatomy of a Termsheet 5 — Voting Rights

Welcome back to the fifth installment of my series on the Anatomy of a Term Sheet. In this series, I am going through the model term sheet provided by the National Venture Capital Association, which you can find here. In previous posts, I discussed provisions such as pre-money valuation, the Read More

Anatomy of a Term Sheet 4 – the Liquidation Preference

Welcome back to the fourth installment of my series on the Anatomy of a Term Sheet. I hope this series is helpful to startup founders, and helps break down some of the legalese in venture capital term sheets. In this series, I am going through the model term sheet provided Read More

Anatomy of a Term Sheet 3 – Dividends

Welcome to Part 3 of my series, Anatomy of a Term Sheet. If you are new to this series, I am analyzing in detail a Series A investment term sheet, using the model term sheet from the National Venture Capital Association. Part 1 of the series, which addressed some basic Read More

Anatomy of a Term Sheet – Part 1

Today I start a new series, Anatomy of a Term Sheet. I’m going to take a fairly standard term sheet for a Series A venture capital funding, and explore the various provisions in detail. There are a variety of complex issues lurking in these term sheets, and it is important Read More