Get 15391 Venture Capital Term Sheet - Mit Opencourseware - Ocw Mit

This guide is designed to assist users in effectively filling out the 15391 Venture Capital Term Sheet available through MIT OpenCourseWare. Whether you have legal experience or not, this document provides the necessary structure to guide you through the process.

Follow the steps to successfully complete the term sheet online.

1. Press the ‘Get Form’ button to obtain the term sheet document and open it in your preferred format for editing.
2. In the section labeled ‘Amount of Investment’, input the total investment amount being offered. For example, this could be entered as $4,000,000.
3. Fill in the 'Investor' field with the name of the venture capital firm or individual investor who will be making the investment.
4. Indicate the ‘Type of Security’ as Series A Convertible Preferred Stock. This specifies the class of stock being issued to the investor.
5. Set the 'Pre-Money Valuation', which reflects the company's valuation prior to this investment round, in this case, $4,000,000.
6. In the 'Price' section, enter the price per share for the Series A Convertible Preferred Stock at $1.00.
7. Complete the 'Capital Structure Following Series A Round' by detailing the distribution percentages of existing common stock holders, the option pool, and the new Series A Preferred Stock holders.
8. Describe the 'Use of Proceeds,' indicating that the funds will be allocated for working capital purposes.
9. Input information regarding 'Dividends', indicating an 8% non-cumulative dividend in accordance with the terms.
10. Explain the 'Conversion' clause, detailing how and when the Series A Preferred Stock can be converted to common stock by the holder.
11. Outline the 'Antidilution' terms, describing protections against dilution of ownership for the Series A Preferred Stock holders.
12. Fill in the 'Voting Rights' section to clarify how voting power will be allocated based on the shares held.
13. Detail the 'Liquidation Preference', indicating payout priorities upon liquidation according to the specified terms.
14. Complete the 'Board of Directors' section by designating member qualifications and appointment terms.
15. Confirm the stipulations under 'Options and Vesting', ensuring terms for stock and options held by founders and employees are specified.
16. In the 'Registration Rights' section, explain the rights related to registration for public offerings.
17. Clarify the terms of 'Redemption' for Series A Preferred Stock.
18. Review and complete the 'Affirmative Covenants' obligations that the company will undertake.
19. Finish with administrative fields such as 'Confidentiality', 'Standstill', and 'Conditions to Closing'.
20. Once all sections are filled out, ensure to review the document for accuracy, save changes, and download or share as necessary.

Complete your term sheets and other documents online to ensure clarity and professionalism in your venture financing.