Nearly all venture capital deals start with a term sheet. A term sheet is a non-binding agreement that sets out the basic terms and conditions under which an investment will be made. It allows those involved to reach an agreement on the major deal points before moving to the definitive investment documentation. If negotiated properly, a term sheet can make for a more efficient and cost-effective legal process.
Listed below are a series of short articles to de-mystify term sheets for entrepreneurs and scaling businesses.
Valuation
Liquidation Preference I
Liquidation Preference II (Non-Participating v Participating)
Redemption
Conversion
Anti-Dilution I
Anti-dilution II (Full Ratchet)
Anti-Dilution III (Weighted Average)
Voting
Protective Provisions
Information Rights
Pre-emption
Share Transfers and Rights of First Refusal
Dividends
Co-sale and Tag-Along Rights
Andrew Betteridge
Partner & Head of the Commercial Services Division
+44 (0)117 321 8063 +44 (0)7843 265362 a.betteridge@ashfords.co.uk View more
Rory Suggett
Partner and Head of Corporate
+44 (0)117 321 8067 +44 (0)7912 270526 r.suggett@ashfords.co.uk View more
Chris Dyson
Partner and Head of Technology Sector
+44 (0)117 321 8054 c.dyson@ashfords.co.uk View more
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