Lead Instructor:
You’ve met the founding team and really like the company. Now it’s time to know if the deal is right for you. As an angel, you’ll need to understand the term sheet, the document that outlines the terms and conditions of the agreement between the investors and the startup. This half-day introductory seminar provides clear, practical information on early-stage term sheets, focused on helping newer angel investors understand deal terms. The course includes lectures, interviews and an engaging exercise for attendees, using a publicly available term sheet template for seed and early stage preferred shares deals. The fun exercise will build your understanding of sound term sheets aligned with the interests of both entrepreneurs and early-stage investors, and setting the stage for follow-on investors. Key concepts covered in the seminar include:
- Corporate structures preferred by investors
- Advantages and disadvantages of equity versus debt and derivative alternatives
- Practical framework for the important components of term sheets
- What terms like “liquidation preference” and “participation rights” mean
- Key terms to address investors’ concerns
- Basic philosophy for negotiation
The course is based, in part, on content in an upcoming book, “Termsheets and Valuations,” by Hambleton Lord and Christopher Mirabile of Seraf Investor.
Lead Instructor:
Boise Angel Alliance