Venture Capital Financing Terms2007.pdf

文档介绍：Table of Contents



Tab
Presentation Slides .................................................................................... 1

Sample — Non-Binding Term Sheet .............................................................2

Sample — Memorandum of Terms for Offering of
Series A Preferred Stock .............................................................................3

Trends in Terms of Venture Financings – Q3 2006........................................4

Current Venture Financing Environment – Q3 2006 ......................................5

About Fenwick & West ...............................................................................6
EARLY STAGE
FINANCING TERM SHEETS
January 11, 2007
Fred Greguras
fgreguras@
[phone]
Andrew Luh
aluh@
[phone]
Lily Toy
ltoy@
[phone]
CHINESE INFORMATION AND
NETWORKING ASSOCIATION
WORKSHOP
1682219v1
OVERVIEW
„ Assumes Caymans, BVI, US or other non-
domestic China Corporation
„ Seed Financing Terms
„ Venture Capital Financing Terms
„ Issues in China Venture Capital Deals
1
EARLY STAGE FINANCINGS
„ Seed Financing
• Friends, Family, Angels
• Quick, Simple, Cheap
• mon stock, preferred stock or
convertible note
„ Corporate Partner
• Valuation
•“Strings attached”
„ Venture Capital
• Market validation and economic scalability
„ Role of a Term Sheet
• Specification or blue print
• Point discussions vs. entire term sheet
2
SEED FINANCINGS: USE OF
COMMON STOCK
„ Must value pany if stock is sold
„ Pricing mon stock must be same for all sales at or
about the same time. Cannot grant options to employees
for $ and sell shares mon stock to seed
investors for $ at the same time
„ mon stock is not generally used because of the
dilutive effect
• Consider number of shares at $ per share
needed to be sold to raise even $100! (10,000
shares)
„ Objective is to keep mon stock pric