---
title: Term Sheet
TARGET DECK: Obsidian::H&SS
FILE TAGS: startups::term-sheet
tags:
  - startups
  - term-sheet
---

## Overview

According to Feld et al., there are only two things VCs actually care about when making investments:

* **Economics**: the return investors ultimately get in a liquidity event;
* **Control**: mechanisms that allow investors to exercise control over the business and/or veto decisions the company can make. 

%%ANKI
Basic
According to Feld et al. what two things do VCs *actually* care about when making investments?
Back: Economics and control.
Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
<!--ID: 1721667425673-->
END%%

%%ANKI
Basic
VCs care about the economics of an investment. What does that refer to?
Back: The return investors will receive in case of a liquidity event.
Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
<!--ID: 1721667425676-->
END%%

%%ANKI
Basic
What terms found in a term sheet relate to "economics"?
Back: Those related to the return investors receive in a liquidity event.
Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
<!--ID: 1721667425682-->
END%%

%%ANKI
Basic
VCs care about the control of an investment. What does that refer to?
Back: The ability to push and/or veto decisions made by the company.
Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
<!--ID: 1721667425684-->
END%%

%%ANKI
Basic
What terms found in a term sheet relate to "control"?
Back: Those that effect investors ability to push and/or veto decisions.
Reference: Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.
<!--ID: 1721667425679-->
END%%

## Bibliography

* Brad Feld and Jason Mendelson, _Venture Deals_, 3rd ed., n.d.