Terms Explainer
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Terms Explainer
Venture capital terminology can be complex. Things can get even more confusing once you start discussing and negotiating the terms in a term sheet. Maine Venture Fund term sheets are based on standard, model documents provided by the National Venture Capital Association (NVCA).
We recently developed the following guides, located on MVF’s Resource Page, to supplement our standard term sheets (for both Convertible Notes and Priced Equity)and help explain what different terms mean and why they are important for both investors and companies:
Our hope in providing these tools is to make the process of navigating a term sheet as transparent and straightforward as possible so that both parties (companies and investors) can engage in negotiation from a place of equal footing. Please feel free to disseminate these tools among your networks if you find them useful.
As we also typically recommend, the book Venture Deals by Feld and Mendelson is a great resource for those attempting to go a bit deeper in understanding these concepts.
About Maine Venture Fund
Maine Venture Fund invests in dynamic businesses that have the potential for significant growth and impact in Maine. For more information, visit maineventurefund.com.
Inquiries:
Terri Wark
Maine Venture Fund
(207) 924.3800
terri@maineventurefund.com
