Publisher's Synopsis
An incredibly practical guide which includes slides and speaker notes for course instructors, these courses cover all of the key issues associated with negotiating termsheets and valuations for early stage investments. There are two main sections in this book.
The first section includes the slides for an in-depth, 2 hour class that we call the "Essentials of Termsheets". This class will introduce you to key aspects of termsheets including:- Termsheet Definition and Philosophy,
- A Framework for Understanding the 4 Key Sections of the Termsheet,
- A Balanced Approach to Negotiating Deal Terms, and
- Security Types Used in Angel Investments The second section includes the slides for an in-depth, 1 hour class that we call the "Essentials of Valuations". This class will introduce you to an approach for valuing companies that continues the tradition of building on everything great that came before, but adds key refinements necessary to make it work reliably in real life:
- Why Valuation Matters,
- Historical Approaches to Valuing Companies,
- The Seraf Method for Valuing Companies, and
- How to Negotiate Valuations In addition, we include an appendix with tools and templates to help facilitate the negotiating process. By mastering the materials in this book, you should be confident that you can pull together a well negotiated termsheet and valuation that will ultimately lead to helping you increase the financial returns from your angel investments!
