This is it folks, the field is now live, let the games begin!!
*Editor’s Note: Another huge thanks to Foundry Group and Venture Deals as without this book, our (limited) knowledge of these terms would be non-existent.
Palo Alto Regional:
1. Price (Valuation) vs. 4. Right of First Refusal
2. Pay to Play vs. 3. Dividends
1. Board of Directors vs. 4. No-Shop Agreement
2. Vesting vs. 3. Protective Provisions
1. Liquidation Preference vs. 4. Employee Option Pool
2. Antidilution vs. 3. Conversion Rights
Do you find yourself wondering which terms and triggers in a term sheet or financing negotiation are most effective or powerful? Losing sleep over whether or not to accept fully participating liquidation preferences with a full ratchet provision (hint: don’t)? Want to get a better understanding of the true power rankings of what is valuable and what is lawyer “boilerplate”?
If so, then you are in for a treat! In honor of “March Madness” we have decided to create our own version of the madness, C:V. style! Over the coming days and weeks, we will be holding our first ever “Term Sheet Madness” where we will be matching up some of the key terms and triggers in a financing against one another and having them battle it out until a victor is crowned!
In the process, we will also give an explanation (as best we can, we are neither VC’s nor Lawyers…) on what the term means and why it is so often (or not often) used/in vogue/SAT word eligible.
Early “term-ologists” have Price and Liquidation Preference as early favorites, but Board Seats have made an impressive run in their conference tourney and is by far the hottest term in the field….
Term Sheet Central:
Palo Alto Regional
Palo Alto Finals
Term Sheet Madness Finals