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