Funding Your Startup:Anatomy of Term Sheet for Entrepreneur

Learn the tips, tricks and language of early stage funding and get your dream off the ground!
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  • Lectures 16
  • Length 2.5 hours
  • Skill Level All Levels
  • Languages English
  • Includes Lifetime access
    30 day money back guarantee!
    Available on iOS and Android
    Certificate of Completion
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About This Course

Published 8/2015 English

Course Description

Have an amazing idea for a company but need to raise money?

Do you know what a Term sheet, liquidation preferences, participation rights are?

How about the difference between cumulative and non-cumulative dividends or common and preferred stock?

If not, you've come to the right place. In my course Funding Your Startup: Anatomy of a Term Sheet I cover everything from the lingo to the financial analysis of negotiating a financing deal with an institutional investor.

Become a Master Negotiator!

  1. Know the Language of the Term Sheet
  2. Calculate an Investor's Conversion Point
  3. Analyze Different Deals and Pick the Best One for Your Company
  4. Learn What a Potential Investor is Looking For
  5. Analyze and Choose the Best Investors!

Maybe you're just starting your company or you're in the process of raising $10 million for your amazing app, either way you need to know the insights and analysis to get the best deal!

This course combines spreadsheets and lectures to provide you an in-depth look at how different deal points can affect your bottom line. Students will be able to download the corresponding materials and follow along as I break down advanced terminology and illuminate how they translate into the real world.

I'm an entrepreneur who has started two companies and loves helping other entrepreneurs achieve their dreams, getting funding is one step along that path!

What are the requirements?

  • What a term sheet is
  • Have a basic understanding of excel
  • Download corresponding course materials

What am I going to get from this course?

  • Evaluate different offers
  • Spot bad deals
  • Calculate an investor's break even
  • Negotiate better deals
  • Understand participation rights
  • Understand liquidation preferances

What is the target audience?

  • Entrepreneurs looking to raise funds
  • Not appropriate for companies beyond series B or beyond rounds
  • People with a great idea looking to make it big

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.

Curriculum

Section 1: Intro to Term Sheets
Introduction
Preview
02:50
About the Instructor
Preview
05:56
05:16

We'll have a quick discussion of how a company in this position will be structured and some other basic knowledge around startups that you need to know before we move on.

Section 2: Key Terminology
06:23

Going through the difference between Common and Preferred Stock as well as breaking down the different types of preferred stock.

04:43

Critical Term Sheet Language

Section 3: The Cap Table
05:47

Breaking down John Doe and Steve Entrepreneur's ownership shares in a pre-money and post-money valuation.

06:15

Let's take a look at their wonderful gift.... I mean offer.

Section 4: The Term Sheet: Negotiating a Financing Deal
09:37

Closing Date, Investors, Amount Raised, Price per Share, Pre-Money Valuation, Capitalization

18:01

Dividends, Liquidation Preferences, Voting Rights, Protective Provisions, Anti-Dilution Provisions

18:01

Stock Purchase Agreement, Investors Rights Agreement, Right of First Refusal Agreement and Miscellaneous other items.

11:31

Understanding your potential investors is key to getting the right deal for your company. Here we'll explore different ways to analyze and vet investors.

Section 5: Analyzing a Term Sheet: Tips and Tricks
10:49

Analyzing the effect of different deal points on the distribution of capital.

5% Dividend 1X Liquidation Cap 5 Year Sale

12:11

Here we break down different liquidation and participation caps. Deal points are critical!

08:26

The final scenario we'll be breaking down including a 2x participation cap with a 1x liquidation cap and no dividend.

Section 6: Finishing Up
09:29

Books, Podcasts and Websites to keep in mind.

02:54

twitter: @ilgweedo email: mike@yoursequr.com

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Instructor Biography

Michael Maxsenti, Entrepreneur

As an entrepreneur who has started two companies before graduating college, I understand the incredible struggle and personal risk that goes into creating awesome new companies and achieving personal freedom.

I began my college career as a baseball player, but when injuries ruined my career I decided to repurpose my leadership skills and personal drive into creating companies. I have always been a nerd at heart for as long as I can remember, and my love for entrepreneurship is my outlet for that nerdiness. Through managing two companies, graduating college with a degree in International business and raising money for my first company I have gained a lot of skills and insights that I want to share with other entrepreneurs. I am going to translate those skills to help my Udemy students bring their amazing ideas to life and create healthy companies that are worthy of investment from VCs and Angel investors.

Sure I don't actually need to spend my time making these courses, but I have gained some amazing skills from starting and running my companies and I love seeing other entrepreneurs create incredible new companies and bringing their visions to life. I hope you enjoy my courses and use your new skills to achieve your own personal financial freedom!

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