Negotiating Series A Term Sheets with Venture Capitalists

About the Course:

If due care is not taken when negotiating Series A investments with venture capitalists, an entrepreneur could not only raise less capital and receive a lower valuation than he expected. Rather, the entrepreneur could be fired by his venture capitalists before any of his shares vest.

Before you negotiate with a venture capitalist you must:

  • Understand how to structure your balance sheet and prepare a cap table
  • Know how to handle the issue of non-disclosure agreements
  • Appreciate the advantages and disadvantages of having one VC versus a syndicate of VCs
  • Assess the real value of advice and introductions that a venture capitalists can make on behalf of your company
  • Determine the right number of people to bring to the initial meeting
This session provides valuable insight into specific negotiating strategies with respect to:
  • Determining if one tranche of funding is better than multiple tranches
  • Discern when stock option vesting should be subject to cliffs, acceleration, single-triggers and double-triggers
  • Averting granting venture capitalists redemption rights
  • Using drag-along and tag-along rights
  • Scenarios under which founders can be terminated and consideration for such termination
This session discusses negotiating strategies to avert or mitigate issues such as:
  • Option pools severely diluting founders
  • Liquidation preferences becoming excessively favorable to investors
  • Anti-dilution protections destroying founders' interests in their companies
  • Performance-based adjustment mechanisms causing dissention between the founders and investors
  • Cumulative compound dividend provisions creating large and often unfunded liabilities
Bonus: Registrants to this webinar will receive excel models which demonstrate the calculation of:
  • Pre-money and post money valuations
  • Capitalization tables
  • Cumulative compound dividends
  • Performance-based adjustment mechanisms
  • Option pools
  • Liquidation preferences
  • Anti-dilution protections
  • Angel conversion discounts

Course Leaders: David Wanetick, Managing Director, IncreMental Advantage, LLC

David is recognized as a thought leader in the valuation of intangible assets as well as strategic negotiations. His clients include Fortune 1000 companies, trade associations, not-for-profit organizations governmental organizations and political campaigns. David is the author of three books that have achieved world-wide acclaim, the most recent of which is The Power of Incremental Advantage: How Incremental Improvements Produce Dramatically Disproportionate Results.

David has been a guest on CNBC, Bloomberg and CNNfn and has been quoted in the Wall Street Journal, Barrons, Investor's Business Daily, Boards & Directors, and many other newspapers, blogs and magazines throughout the United States, Canada and Europe. He runs seminars on the Valuation of Emerging Technologies as well as Strategic Negotiations on behalf of many organizations and corporations all over the United States, Canada, Singapore, Kuwait, The United Kingdom, Belgium, Germany, the Netherlands, Malaysia, Hong Kong and Israel.

Course Length: Approx. 2.0 hours


Purchase Now:

Need help purchasing this course? Please contact Neomi Barazani at 609-919-1895 ext. 100 or at