Venture capital term sheets have undergone a significant evolution over the last half-century, transforming from simple one-page letters into the eight-page “literary masterpieces” that define modern startup...
Category: Employment Law
Leverage in venture negotiations is often misunderstood as a function of confidence, reputation, or negotiation skill. Founders are told to “hold their ground,” “project strength,” or “create urgency” at the...
In the professional life of a venture-backed startup, the “down round” is often discussed with a sense of dread, as if it were a moral judgment on a founder’s execution or a signal of irreversible failure....
Note: This is an advanced extension of our venture capital term sheet series. It is intended for founders and executives who have already internalized the conceptual purpose of liquidation preferences—as downside protection...
Note: This is an advanced extension of our venture capital term sheet series. It is intended for founders and executives who have already internalized the conceptual purpose of anti-dilution protection—risk allocation and...
You have spent the last few weeks deconstructing the individual gears of the venture capital machine. You now understand the linguistic traps of pre-money versus post-money valuation, the “silent dilution” of the...
In the previous installments of this series, we have focused heavily on the “Economics” half of the venture capital term sheet. We have dissected how valuation is measured, how dilution occurs on a fully diluted...