Entrepreneurial Finance and Venture Capital

  1. Structuring the Venture Deal
    1. The Term Sheet
      1. Key Economic Terms
        1. Valuation
          1. Pre-money Valuation
            1. Post-money Valuation
            2. Price per Share
              1. Liquidation Preference
                1. Non-participating Preferred
                  1. Participating Preferred
                    1. Preference Multiples
                      1. Caps on Participation
                      2. Anti-Dilution Provisions
                        1. Full Ratchet
                          1. Weighted Average
                            1. Broad-Based Weighted Average
                              1. Narrow-Based Weighted Average
                            2. Employee Stock Option Pool
                              1. Pool Size
                                1. Impact on Dilution
                              2. Key Control Terms
                                1. Board of Directors Composition
                                  1. Protective Provisions
                                    1. Drag-Along Rights
                                      1. Tag-Along Rights
                                        1. Co-Sale Rights
                                          1. Information Rights
                                            1. Registration Rights
                                          2. Negotiation Strategies
                                            1. Founder Perspective
                                              1. Investor Perspective
                                                1. Common Points of Contention
                                                  1. Win-Win Structuring

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                                                6. The Venture Capital Investment Process

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                                                8. Post-Investment Management and Value Creation