Unternehmer Lounge – The Term Sheet
Insights on interesting topics relating to entrepreneurship and the venture capital sector and insightful exchanges between startups, entrepreneurs and investors – that is our Entrepreneur Lounge. On April 4th, 2024 we examined the topic: The term sheet – the first sticking point between startups and investors – in a relaxed atmosphere at the Salon des Franx in Magdeburg.
The topic of the evening, The Term Sheet, was explained by Dominik von Wissel, a lawyer specializing in corporate law, M&A, private equity, venture capital and the area of investment funds, and our principal Ywes Israel, and encouraged a lively round of discussions.
At the latest with the discussions on the term sheet, things start to get serious in the corporate financing process – the foundations for joint cooperation in the coming years are agreed upon. The wishes of the founders and the requirements of the investors often differ. Regardless of whether there are binding or non-binding regulations, a term sheet sets the framework for further contract negotiations and at the same time minimizes the risk of a (costly) termination of the contract. In order to conduct the discussions successfully, it is important, on the one hand, to know exactly what the individual points mean and, on the other hand, how the willingness to compromise can be explored.
Dominik von Wissel
wissel@buse.de
Buse Rechtsanwälte Steuerberater Partnerschaftsgesellschaft mbB
The participants were particularly interested in the content factors of a term sheet – so we put together the following points together with our guests in a constructive discussion:
– Investment amount & financing rounds
-Exit
– Parties to a term sheet & the respective percentage distribution
– Investment type
– Prerequisites
– Time schedule
– Exclusivity
– smart money
– Rights & Responsibilities
– Milestones & tranches
– Vesting
– Guarantees & Liability
– Reporting
But ultimately it’s about creating a basis for mutual trust, because that is the prerequisite for successful company development.
Further detailed information about the term sheet in the Insights
Save the date
The bmp Portfolio Day on September 5th, 2024 in Magdeburg.
