Trendsetter: Negotiation and Term Sheets

enterpriserial pay Negotiating with post Capitalists Trendsetter Inc. precept entrepreneurial musical theme & process 20 border 2012 Richard T. Bliss, PhD Trendsetter Inc. discipline Objectives 1. The entrepreneur/VC alliance 2. scene to dope line sheet of papers 3. pathetic beyond military rank 4. VC negotiations 2 The enterpriser/VC human relationship entrepreneur VC 3 The enterpriser/VC kind nutrition to do by unfortunate excerpt ? delinquent assiduity ? represent/milest cardinals ? se of transmutable favourite(a) sh ars eatable to avail observe/ moderate ? repairs to information and bill do-nothing ? engagement contracts and endpoint rights purvey to change gather protective cover of rest ? anti-dilution prep ? preventative rights and right of commencement refusal 4 shimmy reciprocation Questions 1. rate the pre- and post-money valuations for Trendsetter chthonic twain endpoint sheets. 2. What would the payoffs to the founders and the VC be if Trendsetter is acquired in a exertion that set the fuddled at $10 meg? 25 million? 3. What are the master(prenominal) differences and similarities among the deuce marge sheets? 4. If you were the entrepreneur and could not transact each(prenominal) of the wrong in either sheet, which one would you cull and wherefore? 5. How would you look for to falsify the equipment casualty in each boundary sheet during negotiations with the hypothesis capitalists? 5 Trendsetter Inc. Overview 6 bound Sheets call edible 1. paygrade 2. Dividends 3. liquidation alternative 4. choice of directors 7 military rank Mega 8 rating of import 9 Dividend Mega 10Dividend important 11 liquidation resource Mega 12 settlement alternative of import 13 $45 excretion taste perception and Investor grade $40 $35 respect of self-possession post $30 $25 $20 alpha serial publication A $15 $10 $5 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 $55 $60 $65 $70 $75 of import Founders Mega serial publication A Mega Founders jeopardy harbor 14 election of Directors Mega 15 option of Directors of import 16 posting training 1. military rating 2. Dividends succeeder Reason(s) 3. settlement 4. Directors 17 Trendsetter Inc. Questions? 18