notebook/notes/startups/term-sheet.md

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

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%%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.

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%%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.

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%%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.

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%%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.

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Bibliography

  • Brad Feld and Jason Mendelson, Venture Deals, 3rd ed., n.d.