Tuesday, February 9, 1:00 to 2:00 PM PST (Recorded)
Most emerging companies with rapid growth plans will seek venture financing. Whether you sell SAFE, convertible notes, or preferred stock, venture investors expect that your financing will feature standard rights and use accepted documentation, but that isn’t the end of the story. Decisions about valuation, founders’ rights, and control over decision making can have long-lasting impacts on the company, and the interests of the investors will quickly deviate from those of the original stockholders. It is important to understand the financing process, where there is room to negotiate, and which investor rights are non-negotiable. This talk will walk through the process of a typical venture investment, starting at the term sheet stage and moving through the definitive documents. We will focus on real-life examples and the consequences of certain decisions in the lead-up to closing.