16: Venture Finance Workshop

Summary: Raising money is arguably one of the most important decisions a founding team has to make. How much to raise? How much equity to give up? What is a fair valuation? What does the term sheet really say? In this workshop, we will try to address some of these questions by looking at funding options, term terms to lookout for, and learning some basic venture math.

Quote of the Day: "It's not the size of the slice, but the size of the pie that matters."

Guests (Click for Bios)
Ann Miura-Ko, Floodgate

Dan Dorosin, Fenwick and West

Required Readings (Policy on Required Readings.)

• Review the material from the accounting workshop in Session 4 (textbook chapters, session slides)
• Review the following items from previous cases and readings (cap tables and investment rounds):
  • Sirtris: Exhibit 4
  • Netscape: Table 18.12 (Dorf & Byers)
  • FedEx: Table 18.14 (Dorf & Byers)
    

• Read entries from Feld's term sheet blog
  • Price
  • Liquidation Preference
  • Board of Directors
  • Anti-Dilution
• Fenwick and West Term Sheet Article