Posts Tagged ‘pay to play provisions’
Walker Twitter Highlights: May 16th – 22nd
by Scott Edward Walker on May 23rd, 2011I’m using Twitter as a form of micro-blogging to share interesting blog posts, articles and podcasts relating to entrepreneurship and startups, M&A and legal issues. If you missed this past week’s Twitter updates, below are my five most popular tweets (via bit.ly) and my blog-related tweets. If you’d like to see all of my tweets (or an RSS feed of them), you can do so here. Cheers, Scott
VC Term Sheets – Pay to Play Provisions
by Scott Edward Walker on May 19th, 2011Introduction
This post originally appeared as part of the “Ask the Attorney” column I am writing for VentureBeat. Below is a longer, more comprehensive version, which is part of my ongoing series on venture capital term sheets. Here are the issues I have addressed to date:
- common mistakes dealing with VC’s
- valuation
- liquidation preferences
- stock options
- exploding term sheets and no-shop provisions
- anti-dilution provisions
- dividends
- Board control
- protective provisions
- drag-along provisions
In today’s post, I examine “pay-to-play” provisions, which can be an important protection for the founders.