- Choose Which Term Sheet Vc A Or B 1 (206.98 KiB) Viewed 43 times
Choose which term sheet? VC A or B?
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answerhappygod
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Choose which term sheet? VC A or B?
Choose which term sheet? VC A or B?
Dividends: VC B Paid on the Series A Preferred on an as-converted basis when, as, and if paid on Common Stock. VCA The Series A Preferred will be entitled to receive an annual cumulative dividend in preference to the common stock, at the rate of 8% per annum payable upon liquidation or redemption or in the event the company's board of directors declares a common dividend. Anti-dilution: Broad-based weighted average Full-ratchet Mandatory conversion: Series A will automatically convert into common stock in the event of (i) the closing of an underwritten public offering net proceeds of not less than $50,000,000 and a pre-offering valuation of not less than $350,000,000, or (ii) upon the written consent of the majority of the Series A Preferred. The board shall consist of 3 members: Two designated by the founder, and one from VC A Partners. Series A will automatically convert into common stock in the event of (i) the closing of an underwritten public offering with a price of 6X the original purchase price and net proceeds of not less than $40,000,000, or (ii) upon the written consent of two-thirds of the Series A Preferred. Board composition: The board shall consist of 3 members: One founder, one from VC B, and one from the other VC None Founder reverse vesting Pay to play: Expected Value of Founder proceeds Pre-money valuation Stock owned by founders will be 25% vested and the remaining 75% will vest over the next 36 months Yes 5.5M No 6.5M 6M 7M Employee option Pool 24% 14% Liquidation preference Convertible preferred with a 1X preference (No participation) Participating preferred with a 1X preference and a 2.5X cap 1
Dividends: VC B Paid on the Series A Preferred on an as-converted basis when, as, and if paid on Common Stock. VCA The Series A Preferred will be entitled to receive an annual cumulative dividend in preference to the common stock, at the rate of 8% per annum payable upon liquidation or redemption or in the event the company's board of directors declares a common dividend. Anti-dilution: Broad-based weighted average Full-ratchet Mandatory conversion: Series A will automatically convert into common stock in the event of (i) the closing of an underwritten public offering net proceeds of not less than $50,000,000 and a pre-offering valuation of not less than $350,000,000, or (ii) upon the written consent of the majority of the Series A Preferred. The board shall consist of 3 members: Two designated by the founder, and one from VC A Partners. Series A will automatically convert into common stock in the event of (i) the closing of an underwritten public offering with a price of 6X the original purchase price and net proceeds of not less than $40,000,000, or (ii) upon the written consent of two-thirds of the Series A Preferred. Board composition: The board shall consist of 3 members: One founder, one from VC B, and one from the other VC None Founder reverse vesting Pay to play: Expected Value of Founder proceeds Pre-money valuation Stock owned by founders will be 25% vested and the remaining 75% will vest over the next 36 months Yes 5.5M No 6.5M 6M 7M Employee option Pool 24% 14% Liquidation preference Convertible preferred with a 1X preference (No participation) Participating preferred with a 1X preference and a 2.5X cap 1