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Venture Capital Term Sheets or How you can make millions of dollars  and keep none of it for yourself Leo Parker Dirac UW Business School MBA Candidate Supporter of the Robot Revolution
What you’ll learn ,[object Object],[object Object],[object Object],[object Object],[object Object]
How VC’s work Investor Investor Investor VC fund Investor Startup Startup Startup
When VC is appropriate ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
VC is not for… ,[object Object],[object Object],Zombies!!! Image by Dubb http://www.subdivisionmodeling.com/forums/showthread.php?t=1133
What is a Term Sheet ,[object Object],[object Object],[object Object],[object Object]
What’s in the Term Sheet ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Valuation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Common Stock Payout Management’s Share VC’s Share
Liquidation Preference ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Liquidation Preference: At low valuation, VC’s take all
At high valuation, payout % approaches ownership %
Liquidation Preference Multipliers
Is this Fair? ,[object Object],[object Object],[object Object]
Preferred Shares are necessary ,[object Object],[object Object]
Dividend Mischief ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
VC’s are not Evil ,[object Object],[object Object],[object Object],[object Object],[object Object]
Cumulative Dividend ,[object Object],[object Object],[object Object],[object Object],[object Object]
Final Tips ,[object Object],[object Object],[object Object],[object Object],[object Object]
Thanks! ,[object Object],[object Object],[object Object]

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5-minute primer on VC Term Sheets

Notas del editor

  1. Hi everybody. My name’s Leo, and I’m going to explain a few things about venture capital term sheets. And I’ll try to talk a little slower than I did last time I was up here. Hopefully you’ll be able to follow along a little better.