An Introduction to Investment Term Sheets, with Burges Salmon
Join Farm491 service provider, Burges Salmon, to discuss investment term sheets including why they’re used and key details to look out for.
About this Event
Equity fundraising is part and parcel of scaling most businesses. At some point along their journey most founders will be faced with an investment term sheet. The purpose of this session is to try and demystify the concepts and terminology in those term sheets.
Content will include:
- Why use a term sheet and when?
- What are the key principles and motivations for investors and founders?
- Using a fictional scenario for illustration:
- What does “pre-money valuation” and “post money valuation mean”?
- Common economic rights that an investor might seek (liquidation preferences and anti-dilution) and some key negotiating points
- Founder exposure to claims – warranties
- Investor protections and controls
- ‘Leaver’ provisions
- Restrictive covenants (non-compete etc.)
- Share transfer.
There will be plenty of opportunity for questions with Alex during the session.
About Alex Lloyd, Senior Associate at Burges Salmon:
I’m a senior lawyer in Burges Salmon’s Corporate Finance team and a member of the firm’s Technology practice group. I have a particular focus on supporting high growth businesses and their investors (institutional, angels and corporates) in our core sectors (including the Food and Farming specialism).
I take a lead role on the firm’s new Bscale initiative designed to: (i) support the wider start-up and scale up ecosystem (by providing guidance, articles and free documentation), (ii) reconcile the competing necessity for high growth businesses to allocate limited resources to their core goals on the one hand and to receiving expert legal advice on the other (through our Bscale pricing model) and (iii) ultimately, build lasting and strategic relationships with the most exciting and innovative companies.