Term Sheet for Venture Capital Investment
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7.05 Term Sheet for Venture Capital Investment
The following term sheet summarizes the principal terms typically included in a venture capital financing:
Term Sheet for Start-Up Company Financing
Security Preferred Stock, Series A
Proceeds and Price per Share As negotiated.
Terms of Preferred Stock
Dividends
Annual per share dividend of [8-10%] of the purchase price of the Preferred Stock prior to any distribution with respect to Common Stock, payable when and if declared by Board. Dividends are usually not cumulative (i.e., if not declared in any year, they are lost and not carried forward to the next year). For any other dividends or distributions, Preferred Stock participates with Common Stock on an as converted basis.
etc.
Term Sheet for Venture Capital Investment is just $12.95 and can be immediately downloaded after purchase.



