Discussion Post: Term Sheet Analysis
An actual term sheet issued by an early-stage venture capital fund to an early-stage company prospect. Assume you are the financial advisor or CFO of the company who received the term sheet and you have been asked by the CEO/Founder to review the term sheet and to write a high level summary for her and her co-founders as follows:
• SUMMARIZE the basic terms,
• Identify any terms that fit the description of terms included to meet "investor concerns",
• Make recommendations to the CEO and her co-founder as to:
o Whether to accept the term sheet in principle.
o Which terms, if any, to negotiate with the venture capital fund.
o Which terms, if any, are killer concerns and should not be accepted under any circumstances.
The response should include a reference list. One-inch margins, Using Times New Roman 12 pnt font, double-space and APA style of writing and citations.