You have secured a meeting with a team from a venture capitalist organization. Although you have had initial discussions, serious dialogue is expected at the next meeting. In preparation, you are developing a term sheet to present in support of the entrepreneurial venture you have been exploring. In a 10 page paper (not including the title page, reference page, and appendix):
Provide a definition of a term sheet and explain its purpose.
Review sample term sheets provided in the text and through the National Venture Capital Association. Identify your position on what is being sold, stock amount, voting rights, dividends, founder rights, and exit provisions. For each element, provide a definition of the element, your rationale for your position, and any objective examples you have found to support your position.
Describe the key issues that must be addressed when preparing to successfully negotiate. Include in your description of any unique considerations.
Summarize the basic interests of the venture capitalist organization and be sure to include a discussion of objections that may occur.
Discuss the non-financial resources that are needed.
Choose and evaluate a legal and negotiation strategy that you will use; be sure to include the areas that you will emphasize.