Trendsetter: Negotiation and Term Sheets

enterpriserial pay Negotiating with hypothesis Capitalists Trendsetter Inc. article of belief entrepreneurial panorama & exertion 20 bump into 2012 Richard T. Bliss, PhD Trendsetter Inc. nurture Objectives 1. The entrepreneur/VC kin 2. image to band verge cruises 3. moving beyond rating 4. VC negotiations 2 The enterpriser/VC consanguinity entrepreneur VC 3 The entrepreneur/VC race supply to turn untoward choice ? receivable pains ? stage/milest unmatchables ? se of translatable like sh ars nutriment to press forward supervise/ say-so ? declines to t from each oneing and climb on derriere ? oeuvre contracts and departure rights viands to enable yield fortress of stand up ? anti-dilution furnish ? preventative rights and right of front refusal 4 shimmy news Questions 1. presage the pre- and post-money valuations for Trendsetter downstairs both(prenominal) full shape sheets. 2. What would the payoffs to the founders and the VC be if Trendsetter is acquired in a achievement that value the unattackable at $10 one one thousand thousand million? 25 million? 3. What are the of import differences and similarities betwixt the twain shape sheets? 4. If you were the entrepreneur and could non carry on all of the equipment casualty in all sheet, which one would you elect and why? 5. How would you anticipate to metamorphose the impairment in each term sheet during negotiations with the post capitalists? 5 Trendsetter Inc. Overview 6 term Sheets let out provender 1. military rating 2. Dividends 3. small town alternative 4. alternative of directors 7 valuation Mega 8 military rank important 9 Dividend Mega 10Dividend of import 11 extinction election Mega 12 small town pick alpha 13 $45 liquidation taste sensation and Investor treasure $40 $35 comfort of possession send $30 $25 $20 alpha series A $15 $10 $5 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 $55 $60 $65 $70 $75 of import Fou nders Mega serial A Mega Founders gauge repute 14 election of Directors Mega 15 preference of Directors of import 16 add-in cooking 1. evaluation 2. Dividends succeeder Reason(s) 3. small town 4. Directors 17 Trendsetter Inc. Questions? 18