Presentation 
Presentation Handout
A company’s first round of venture financing (typically called a “Series A Financing”) is a critical point in its development because the terms on which the VCs invest will determine who has ultimate control over the company and how any future payout is split among the founders and investors. Because the term sheet is often negotiated directly between the entrepreneur and the VC, it is critical that the entrepreneur be familiar with typical terms in a Series A financing and what is “market” for each term. In this two-part seminar, Rick Lucash and Ben Hron will take you through the most common terms found in Series A term sheets and help you understand their importance and how they relate. Topics will include:
Part I: Control Terms - April 4, 2012
• Voting Rights and Board Seats
• Investor Protective Provisions
• Information Rights
• Vesting of Founders’ Equity
• Right of First Refusal
• Co-Sale and Drag-Along
Part II: Economic Terms - April 18, 2012
• Valuation and the Option Pool Shuffle
• Dividends
• Liquidation Preferences
• Anti-dilution
• Pre-emptive Rights and Pay-to-Play
• Redemption Rights
• Registration Rights
Doors will open for networking at 9:30am.
This program is part of McCarter & English’s ongoing series at CIC on legal and business topics for entrepreneurs and emerging companies. Programs are held once or twice each month and are open to members of the CIC and their guests, as well as to the greater Boston entrepreneurial community. Contact: Rick Lucash, 617-449-6568, rlucash@mccarter.com, @ricklucash Benjamin Hron, 617-449-6584, bhron@mccarter.com, @HronEsq
Next: May 2 - VC Investor Roundtable
About the McCarter & English Emerging Companies Group
McCarter’s Emerging Companies Group is dedicated to helping entrepreneurs build and finance their businesses. The group is composed of tech-savvy lawyers who have helped build, grow, sell and take public companies across the full spectrum of businesses, including Internet, software, medical devices, new media, life sciences, cleantech, healthcare, consumer products, biotechnology, retail, e-commerce, entertainment, financial services, insurance and telecom.