Term Sheet Jargon Explained - How to nail the the term sheet by RÖHRBORN LLP | Rechtsanwälte

10/23/19, 2:00 PM - 3:00 PM (CEST)
WERK1 (Workshop Raum 1), Atelierstraße 29, 81671 München


The session is intended to give the participants a broad overview and understanding of the main economic and legal issues and questions, which arise in different stages and scenarios of financing. The session shows both sides of the table – it tries to take a balanced position between the entrepreneur’s and investor’s perspective and points out the traps one might step into when negotiating the terms of an investment. The session is designed to give the participants the opportunity to ask questions and share their experience on the topics. An active participation is very welcome.

The term sheet is a relevant, critical and crucial part of any venture financing. A term sheet for an equity-financing round contains a lot of more aspects and terms than just “We like to invest EUR XX in your company and get XX% of it for our investment”. Although it would be desirable to do venture capital deals with simple and short agreements, this is unlikely to happen. As an entrepreneur – regardless of whether you are a new or seasoned negotiator it is likely that the person who you are negotiating the term sheet with – namely the venture capital fund or the angel investor – has negotiated a decent number of such deals and, hence, is more experienced than you. The session looks closely at the particular terms of venture capital term sheets. A detailed, clause-by-clause examination of a draft venture capital term sheet provides insights and solutions to the typical “sticking points” in a venture deal and what can or cannot negotiated. Among others, this session will cover provisions such as the valuation, i.e. the price for the amount of stock the investors receives in exchange for money, liquidation preference, employee pool, anti dilution, founders vesting, drag along, board composition.