Posts Tagged ‘pull-through provisions’
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.