In Part 1 of this post I said that the terms in a termsheet fall into four categories – those relating to economics, to control, the legally binding ones (exclusivity and costs), and everything else. I then went on to write in a bit of detail about valuation, which is the most important of the economic terms.
In this post I will cover the other key economic terms; liquidation preference and anti-dilution, the most important control terms; board structure and protective provisions, and then finish with a few words on exclusivity and cost. Over these two posts I will then have covered the most important clauses in a termsheet, and you should be able to tell whether a termsheet is attractive or not, but there is a lot that isn’t covered and they are no substitute for a good lawyer.
To read the full, original article click on this link: 50 Questions: What are the key terms in a termsheet? (Part 2 of 2) « « The Equity KickerThe Equity Kicker
Author: Nic Brisbourne
