Venture Capital Deal Terms

About the Authors
Preface

1 Introduction
-Structure of the book
-Investment process

2 New wave energy case study
-Incorporation
-Seed round
-Series A round=early stage phase
-Series B round – growth phase
-Series C round – further growth

3 New wave energy term sheet

4 Terms explained
-Issuer
-Amount of Financing
-Milestones
-Investors
-Type of security
-Warrant coverage
-Share price and valuation
-Capital structure
-Anticipated closing date
-Dividends
-Redemption
-Voluntary conversion
-Automatic conversion
-Anti-Dilution
-Pay-to-Play
-Liquidation preference
-Favourable terms
-Board representation
-Voting rights
-Consent rights
-Registration rights
-Representation and warranties
-Information rights
-Use of proceeds
-Pre-Emptive rights
-Rights of first refusal
-Co-Sale rights
-Drag-along rights
-Management board
-Employee pool
-Vesting scheme
-Founders’ shares
-Lock-up
-Employments relationship
-Non-Competition/Non-Solicitation
-Non-Disclosure agreements
-Assignment inventions
-Key man insurance
-Agreements at closing
-Fees and expenses
-Confidentiality
-Exclusivity/No-Shop
-Governing Law
-Non-Binding character
-Indemnities
-Conditions precedent
-Expiration

Annexes
Annex 1: Term sheet template
Annex 2: Profit and loss account and cash flow statement
Annex 3: Glossary of terms
Annex 4: IRR analysis: Years invested vs. Return Multiple