60 lines
1.7 KiB
Markdown
60 lines
1.7 KiB
Markdown
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---
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title: Term Sheet
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TARGET DECK: Obsidian::H&SS
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FILE TAGS: startups::term-sheet
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tags:
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- startups
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- term-sheet
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---
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## Overview
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According to Feld et al., there are only two things VCs actually care about when making investments:
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* **Economics**: the return investors ultimately get in a liquidity event;
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* **Control**: mechanisms that allow investors to exercise control over the business and/or veto decisions the company can make.
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%%ANKI
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Basic
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According to Feld et al. what two things do VCs *actually* care about when making investments?
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Back: Economics and control.
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Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
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<!--ID: 1721667425673-->
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END%%
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%%ANKI
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Basic
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VCs care about the economics of an investment. What does that refer to?
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Back: The return investors will receive in case of a liquidity event.
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Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
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<!--ID: 1721667425676-->
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END%%
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%%ANKI
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Basic
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What terms found in a term sheet relate to "economics"?
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Back: Those related to the return investors receive in a liquidity event.
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Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
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<!--ID: 1721667425682-->
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END%%
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%%ANKI
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Basic
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VCs care about the control of an investment. What does that refer to?
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Back: The ability to push and/or veto decisions made by the company.
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Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
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<!--ID: 1721667425684-->
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END%%
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%%ANKI
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Basic
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What terms found in a term sheet relate to "control"?
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Back: Those that effect investors ability to push and/or veto decisions.
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Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
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<!--ID: 1721667425679-->
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END%%
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## Bibliography
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* Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
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