A typical term sheet for venture investment agreement contains many provisions designed to protect the value of investor capital. The purpose of this paper is to focus on a few key terms (ie, antidilution, liquidation preference, dividends, redemption and rights management) and discuss how these conditions may be more favorable to investors and entrepreneurs convenient. Conditions are discussed in this note are considered by many practitioners as having the greatest ability to influence the economic benefits to the parties involved in the early stage investment. At the end of each period, the schedule highlights the different ways in which these conditions can be structured. Examples, while not exhaustive, offer a look at the various ways the term may be formulated in order to give different rights on the parties. "Hide
by Susan Chaplinsky, April Triantis Source: Darden School of Business 13 pages. Publication Date: May 17, 2004. Prod. #: UV2526-PDF-ENG
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