Understanding Term Sheets & Deal Structures - Venture Capital Financing Overview

I have been meaning to post this for a while. John Fogg, a partner at Hutchison Law Group here in Raleigh forwarded me a presentation he gave at CED.

Download hutchison_law_group_understanding_term_sheets.pdf

This is really good. It gives a basic overview of the historical venture capital numbers, but more importantly the presentation focuses on:

- explaining the different sources of capital and pros/cons

- identifying the basic structure of startups

- reviewing the principles of term sheets (valuation, control, exit strategy and down-side protection)

If you're new to raising money from angel investors or VCs, this presentation is an excellent starting point. And even if you've raised money before, this can serve as a good refresher and update on current trends.

Thanks to John for letting me post this. He is a great guy and a good lawyer. I'm sure if you have any questions, you can contact him directly.