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, 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 – October 6, 2016
Voting Rights and Board Seats
Investor Protective Provisions
Vesting of Founders’ Equity
Right of First Refusal
Co-Sale and Drag-Along
Ben Hron (http://www.mccarter.com/Benjamin-M-Hron/) concentrates his practice on advising private companies, most in the life sciences and information technology industries, on general corporate matters, angel and venture capital financing, mergers and acquisitions, securities law compliance and strategic collaborations. He also represents investors in connection with the financing of private companies. Ben has extensive experience working with entrepreneurs and emerging companies, often getting involved when a business is still in its infancy and helping guide the founders through the formative early stages of their company’s development. Ben also co-chairs the McCarter & English seminar series for entrepreneurs at the Cambridge Innovation Center.