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50 Questions: What are the Key Terms in a Termsheet? (Part 1 of 2)

By on August 26, 2011

Together with Nic Brisbourne of The Equity Kicker / DFJ Esprit, I am writing a series of 50 questions you should ask when raising venture capital. We expect the series to run for a year, after which we will collate the answers into a book. We view this as a collaboration, so please comment to help make this series even more useful. This is #31 in the series.

If your pitch documents are written well, and your business idea is a good one, and you are impressive, and you are lucky, and, and, and… then you will hopefully be on the receiving end of a termsheet, and ideally more than one.  A termsheet is usually a longish document of 3-10 pages with many clauses and terms.  In this post Nic Brisbourne lists the most important of those and explains what they mean.

For more, go and read 50 Questions: What are the Key Terms in a Termsheet? on the Equity Kicker. Hungry for more? Go to the 50 questions homepage for more insights into venture capital.

About Nicholas Lovell

Nicholas is the founder of Gamesbrief, a blog dedicated to the business of games. It aims to be informative, authoritative and above all helpful to developers grappling with business strategy. He is the author of a growing list of books about making money in the games industry and other digital media, including How to Publish a Game and Design Rules for Free-to-Play Games, and Penguin-published title The Curve: