VDR Ch. 15: Why Do Term Sheets Even Exist?
November 10, 2017 | By Vela Wood
Office Hours is a podcast hosted by Vela Wood venture attorneys Kevin Vela and Aaron Terwey covering general issues related to small businesses and startups. Venture Deals Review is a series of Office Hours episodes discussing the book Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist by Brad Feld and Jason Mendelson.
In this episode, Kevin and Aaron review Chapter 15: “Why Do Term Sheets Even Exist?” and discuss what the term sheet negotiation process establishes, as well as transaction costs and reputation constraints.
- Here’s Why Dallas Is Primed For ‘Series A’ Funding
- Terms Sheets 101: Convertible Debt vs. Equity
- Keep Your Early Rounds Small, Your Valuations Reasonable, And Close Quickly
- Venture Deals Review Ch. 4, Part 2: Economic Terms of the Term Sheet
You can find definitions and examples of terms found in the book and this podcast in our Venture Glossary.
- Convertible Note
- Liquidation Preference
- Most Favored Nations Clause
- Option Pool
- Participating Preferred
- Redemption Right
- Registration Rights
- Series A
- Voting Rights
You’ll want to bookmark Venture Glossary as a quick reference for navigating the venture world. We love talking about startups, so follow us on Twitter. And feel free to email us at firstname.lastname@example.org with any comments or suggestions!