Module 8: Introduction
Equity term sheets include terms that are often unfamiliar to start-ups, including anti-dilution protection, liquidation preferences, drag along rights and founder vesting schedules. This module will highlight the most important lessons of the recommended text Venture Deals, and highlight what to expect in African equity term sheets. This book is recommended as the most entrepreneur-friendly discussion of an extremely complicated subject, including important recommendations about negotiation tactics.
1. What is a term sheet/ general term sheet issues
2. Deal economics
4. Investor protection
5. Management and control
Outcome: Companies will be better positioned to negotiate fair term sheets with equity investors, at lower legal costs and with less friction, to ensure the long-term relationship with investors gets off to a positive start.