Negotiating Term Sheets with Venture Capitalists

About the Course:

Entering into negotiations with venture capitalists without a familiarity with terms such as milestones, liquidation preferences, anti-dilution clauses, ratchets, conversions, redemptions and drag-along rights will result in an expensive education. Fortunately, during this session, veteran lawyer Charles McCormick discusses these terms in great detail.

Among the other issues discussed during this webinar are:

  • Who should bring up the subject of signing a term-sheet and during which stage of the series of meetings should such issue be broached
  • Anticipating timelines for negotiating with venture capitalists
  • An overview of financing instruments such as recapitalizations, preferred stock issuance and mezzanine debt
  • How to determine when venture capitalists have a sincere interest in funding your company and when they are just using you to conduct due diligence
  • How entrepreneurs can best describe their intended use of funds
  • Risks of enlisting unregistered placement agents to assist in your capital raising efforts and related rescission rights
  • Risks of shopping term sheets with other capital sources in the attempt to trigger a bidding war
  • How to negotiate around valuation issues
  • Understanding why venture capitalists are reluctant to sign NDAs
  • Negotiating employee retention incentives
  • Best practices for discussing exit strategies with venture capitalists
  • The importance of demonstrating your company's ability to scale
  • Exclusive negotiating periods

Course Leader: Charles F. McCormick, Partner, McCormick & O'Brien, LLP

Charles has extensive experience advising private equity investors and emerging companies in a wide variety of investment and commercial transactions, including LBOs/MBOs, leveraged recapitalizations, non-bankruptcy restructurings, secured and unsecured debt financings, mergers, stock and asset acquisitions, sales, divestitures, joint ventures, public stock offerings, PIPE transactions and venture capital financings.

As Counsel to O'Melveny & Myers LLP and an Associate with White & Case, LLP Charles also advised directors and managers of public and private companies regarding general strategic planning, including intellectual property management and licensing, management employment arrangements, equity compensation programs, SEC, SBIC, Bank Holding Company and other regulatory compliance, NYSE and NASD listed company rules, strategic alliances, shareholder relations and corporate governance.

Charles has managed a variety of complex domestic and international investment and M&A transactions and possesses significant cross-border transactional experience in Canada, Mexico, Latin America and Eastern and Western Europe. Mr. McCormick is a graduate of the University of Chicago Law School and graduated summa cum laude from Fordham University.

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