The Economics of Term Sheets

The Economics of Term Sheets

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Intro

1 of 22

1 of 22

Intro

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The Economics of Term Sheets

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  1. 1 Intro
  2. 2 The Economics of Term Sheets with Scott Kupor Managing Partner, Andreessen Horowitz
  3. 3 The Alphabet Soup of Term Sheets: Part One (Economics)
  4. 4 The Alphabet Soup of Term Sheets: Part Two (Governance)
  5. 5 Pre-money
  6. 6 x $ invested
  7. 7 Participating/Non-participating Liquidation Preference
  8. 8 M invested
  9. 9 M x 33% = $1.8M
  10. 10 BBWA = Broad Based Weighted Average Anti-dilution
  11. 11 Full Ratchet = Price Reset
  12. 12 Cap Table
  13. 13 M valuation
  14. 14 Option Pool = 20%
  15. 15 M post-money valuation
  16. 16 $4M vs $2M
  17. 17 Liquidity Event
  18. 18 Payoff Matrix
  19. 19 Participating Preference
  20. 20 $10M sales price х 33.3% ownership
  21. 21 M X 33.3% = $5M
  22. 22 Economic ownership

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