Maxwell Consulting

Financing for Startups

Term Sheets and Closings

A Term Sheet is an investor's proposal for the terms under which they will invest. The objective of the long mating ritual with investors is to secure as many Term Sheets as possible.  However, entrepreneurs should view the receipt of a Term Sheet as the beginning of a negotiation, not the end of it.  A Term Sheet sets the valuation for the Company, which is always of keen concern to entrepreneurs.  It also specifies many other facets of the deal that can have a significant impact on the Company's long term operating and financial strategies and degrees of freedom.  I can help with the delicate negotiations over the final form of the Term Sheet in ways that optimize the outcome without blowing the deal.

Once a Term Sheet has been agreed upon, the deal is typically drafted by Investors' Counsel and reviewed by Company Counsel.  A great many "small" details are negotiated during the give and take between counsels, and in fact these negotiations are almost as important as the direct negotiations over the Term Sheet.  It is critical that Company Counsel have prior experience papering venture investments.  I can support Company Counsel during this process and provide direction concerning which points to compromise on and which to fight for.