Term Sheet Analysis

Above is a link to an actual term sheet issued by an early-stage venture capital fund to an early-stage company prospect. Assume you are the financial advisor or CFO of the company who received the term sheet and you have been asked by the CEO/Founder to review the term sheet and to write a high level summary for her and her co-founders as follows:

1. SUMMARIZE the basic terms,
2. Identify any terms that fit the description of terms included to meet "investor concerns",
3. Make recommendations to the CEO and her co-founder as to:
   1. Whether to accept the term sheet in principle.
   2. Which terms, if any, to negotiate with the venture capital fund.
   3. Which terms, if any, are killer concerns and should not be accepted under any circumstances.

You response should be a word document (written in accordance with course guidelines in the syllabus) of approximately 500 words and should be based upon all lectures, text book readings and supplemental readings in Module 8.

The following guidelines apply to all assignments. 

• All written assignments will be in 12 point font, Times New Roman, and single-spaced with 1” margins, with the exception of presentations.
• Submit all assignments to the online class site by the due date.
• Late assignments will receive a penalty of 20% per day for each day submitted late. Please note that there are NO EXCEPTIONS to this policy.
• Do not exceed the page limit requirement as stated in each assignment.