Deal structure and Term Sheets
This e-book on deal structure and term sheets moves you closer to making a deal with your potential investor(s). It brings into focus the importance of defining the elements that will, over the next period, have significant impact on the success of your company.
After reading this short e-book, you should be able to:
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Understand what a deal is comprised of and why this understanding is critical to the start-up entrepreneur
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Be able to describe the differences in needs/expectations of entrepreneurs and investors
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Be able to outline the importance of a term sheet and its significant for the parties involved in using it
Usually the first step toward finalizing the deal structure is a term sheet the entrepreneur negotiates with the investors and the valuations they offer. All things being equal, entrepreneurs would surely choose the investor who offers the higher valuation. But things are rarely equal in the real world!
As a result, there is any number of differences in deal structure and term sheets the entrepreneur can receive.
Therefore do not expect to see a “one size fits all” term sheet, as each investor will want certain terms based upon his preferences. It boils down to three items of greatest important to investors: valuation, control, and protection.
Overall, most of the criteria discussed in previous e-books apply.
In addition, other factors include: what level of funding can be expected in future rounds, how likely are possibilities for later financing rounds, can syndications with other investors work, and are milestones achievable and associated to the funding objectives?
Buy and download this e-book today!
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