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Anatomy of a Venture Capital Term Sheet

KL Gates Hosted Event
Date: 9 September 2021
Time: 1:00 PM - 2:00 PM China Time
Location: via Webinar

In this webinar, Scott Peterman will discuss everything you need to know when preparing and negotiating venture capital term sheets, including critical elements and terms that are typically subject to negotiation.

The full webinar agenda includes a discussion of:

  • Purpose of the term sheet and first steps in preparing
  • Key Terms:
    • Price and valuation
    • Liquidation preference
    • Anti-dilution: full ratchet vs weighted average
    • Board composition
    • Drag-along rights
    • Protective covenants
    • Information and registration rights
    • Participation rights
    • Rights of first refusal and co-sale
    • Closing conditions, confidentiality and other provisions
  • Other key issues:
    • What is the typical venture capital investment structure, and how should it be addressed in the term sheet?
    • What is "market" regarding legal fees, closing costs, and legal opinions required in venture capital transactions?
    • How might a signed term sheet benefit the company and the investor concerning third parties?
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