Who’s on Your Board — And Why It Matters More Than You Think

Who’s on Your Board — And Why It Matters More Than You Think

Byjatan4vyas

For first-time founders, wading through a venture capital term sheet can feel like navigating a maze of complex legal and financial jargon. Among the many crucial clauses, “Board Composition & Rights” stands out as directly influencing the future governance and strategic direction of your startup. Definition This clause dictates the structure and membership of your…

Preferred vs Common Stock: The Real Power Play

Preferred vs Common Stock: The Real Power Play

Byjatan4vyas

The “Type of Security” clause in a term sheet specifies the kind of ownership or financial instrument an investor receives in exchange for their investment.  A specific investment type determines the investor’s rights, preferences, and claims on the company’s assets and future earnings. Some terminology:Security: In simple terms, a “security” is a tradable financial asset….