Don't rely on your cap table to show you the real dilution in your startup ! Join our practical session to learn how to demystify your term sheet and negotiate a better deal for founders and early stage investors.
Why is this important?
Most founders and investors in startups rely on post-money value when determining the impact of a new round of financing or a grant of stock options. This is misguided and inevitably leads to unequal negotiations between founders and early and later stage investors as well as a major gap between expectations and reality at any future liquidity event.
On one hand, it seems natural to look at one’s holding of a startup as a simple % of the “cake”. On the other, as participants will see, even what looks like a sexy term sheet contains pitfalls and hidden complexities which can and must be identified and understood in order to answer the question "What's my real money stake of the cake if I were to sign it as is?".
Case study 1: pre-seed and seed money up until a series-A round. Is it better to issue only common shares? Should you avoid convertible notes in those early stages?
- One example will be shown to go over the key concepts and the math
- A typical legal term sheet structure will be reviewed
Case study 2: Series-A, Series B, etc…What are the big changes? We will cover:
- Evolution and trends in the term sheet scene commonly faced these days in Israel, the US and the UK
- Understanding how investors protect themselves against dilution and get back their money back first in any liquidation scenario
- Simulation of a typical series-B case: We will decode the term sheet, extract the data and build the equation
- "What if?" scenarios
Your takeaway: a clear understanding of how to prepare and negotiate your next round of financing...armed with a powerful real time tool, you will make smarter decisions.
Audience: Whether you are a startup founder, CEO, CFO, stock option holder, investor, or lawyer, this is one SESSION you don’t want to miss!