They are presented with offers detailing many provisions of the investment deal when entrepreneurs are successful in convincing venture capital firms that they are an tempting potential investment. Sorting through the myriad circumstances is at times a daunting proposal for an entrepreneur. These are detailed in the term sheets.
Yet, it is important for entrepreneurs to understand the environment of a proposed funding. The Series A terms may also set a precedent for the conditions of future funding rounds. This case presents a scenario in which entrepreneurs receive term sheets from two venture capital firms. Both term sheets fluctuate in many ways, and pupils are requested to appraise them from the perspective of the entrepreneur.
PUBLICATION DATE: September 12, 2013 PRODUCT #: E460-PDF-ENG
This is just an excerpt. This case is about INNOVATION & ENTREPRENEURSHIP