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Part II: The Investment Process

Chapter 8

Term Sheets and Financing Instruments

The same headline valuation can produce very different outcomes for common stockholders. Venture terms decide how exit proceeds are split, who makes which decisions, and what happens in the next financing.

The preview ends here. The full chapter is in the book.

In this chapter

  1. 8.1The instruments
  2. 8.2Economic terms
  3. 8.3Control terms
  4. 8.4Price and structure trade off