Overview: This module will provide an overview of standard deal terms in a venture financing deal. We'll delve into an in-depth exploration of a term sheet and its key clauses, sharing tactics and strategies for effective negotiations with investors.

Weekly Objectives:

• Understand standard deal terms in a venture financing deal.
• Gain an in-depth understanding of a term sheet and its key clauses.
• Learn strategies for effective negotiations with investors.

Session Breakdown:

1. Introduction to Deal Terms: Overview of standard deal terms in a venture financing deal.
2. Understanding Term Sheets: In-depth exploration of a term sheet and its key clauses.
3. Negotiating Strategies: Tactics and strategies for effective negotiations with investors.

Outcomes:

• Founders leave with a clear understanding of term sheets and key terminology that impacts venture financing

Post-Session Outcomes:

• "Venture Deals" or "Secrets of Sandhill Road" Book Recommendation
• EVCA Term Sheet Template

<aside> 👉 We will conduct a role-play session that simulates negotiation between founders and potential investors. This will allow you to practice your negotiation skills in a safe and supportive environment, helping you to prepare for real-world negotiations.

</aside>

Session Pre-Read: Understanding the Term Sheet

The term sheet serves as the final hurdle in your fundraising journey, encapsulating the main points of agreement between you, the founder, and the potential investor. This document, while often considered non-binding, establishes the fundamental terms and conditions that will guide the final, binding agreement or contract.

What does a term sheet typically include?

A term sheet generally outlines: