国外私募股权交易教程Venture_Capital_Deal_Terms.pptxVIP

Venture Capital Deal Terms;Venture Capital Deal Terms;“Principal” Investors - Institutional or Individual Investors Fund Investors Corporate Strategic Investors Not All Money Is EQUAL: Money Comes With Different Benefits and “Strings” Including Legal Requirements: Which Apply To Where the Money Comes From- The Ultimate Source Of The Funds Which Derive From The Legal Structure of the Investing Entity; ; ; ;Venture Capital Funding Cycle;The State of Venture Capital;The State of Venture Capital;Venture Capital Investment Returns;Venture Capital Funding Cycle;;Major Deal Elements;A Preferred Return;Capital Structure Instruments;Capital Structure Instruments;A Preferred Return: Dividends;A Preferred Return: Liquidation Preference;Comparison of Straight vs. Participating Preferred;WHICH IS THE BETTER DEAL FOR THE FOUNDERS? Case A: Founders sell 40% of the Company for 5m of Convertible Preferred Stock with a $5m Liquidation preference but no participating rights. ($7.5M pre-money valuation) Case B: Founders sell 33% of the Company for $5m of Participating Preferred Stock ($10m pre-money);Valuation and Participating Preferred;A Preferred Return: Liquidation Events;Major Deal Elements;Antidilution Protection Approval Rights;Protection of Valuation:Conversion and Antidilution;Protection of Valuation:Conversion and Antidilution;Protection of Valuation:Conversion and Antidilution;Antidilution Adjustment increases the number of shares received on conversion of Preferred What Triggers Antidilution Adjustment? Issuance or “deemed issuance” of Common at less than preferred issuance price “Deemed issuance”--adjust upon issuance of derivative security; if common never issued, readjust later options, warrants convertible securities;Protection of Valuation: Antidilution;Antidilution;Protection of Valuation and Position:;Protection of Valuation and Position:Approvals;Protection of Valuation and Position: Pre-Emptive Rights;Protection of Valuation and Position: Pre-E