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In this section you can access:

Resources for fund managers building pipeline, structuring deals and executing investments

The first venture capital firm was created in 1946 and several thousands of deals have been done since then with billions of dollars invested. 

Hence, term sheets and legal documents have been drafted, redrafted, many times over and today have a high level of consistency and similarity across deals. However, investors and fund managers tend to spend significant time and money on drafting and re-drafting term sheets and agreements for every new deal. As the NVCA rightly summarized it, the industry goes through an expensive and inefficient process of “re-inventing the flat tire” on a daily basis. To limit these inefficiencies for our fund managers, we have collated market information and publicly available templates on term sheets and legal documentation. In general, these documents could incorporate certain geographic influences, however they could also help young fund managers get a window on best practices and trends in other markets and help reposition the starting point.

Venture Capital

Term Sheets
VC Termsheet (NVCA)

This sample was the work product of a US national coalition of attorneys who specialize in venture capital financings, working under the auspices of the NVCA.

Series A Termsheet (Y Combinator)

Series A term sheet template developed by Y Combinator, the leading Silicon Valley accelerator

Series A Termsheet (BVCA)

BVCA Model Term Sheet for a Series A Round

SVCA Venture Capital Investment
Model Agreements (VIMA)

Provides a set of standardized documentation for use in seed rounds and early stage financings

Series A Termsheet (AllBusiness)

This is a sample term sheet for a start-up company seeking capital from angel investors. This contemplates a Series A Preferred round of financing, but consider whether the stock to be issued should be Common Stock.

Explanatory Notes

Background on preparing a Venture Capital Term Sheet together with the rationale for each term developed by Morgan Lewis, a global law firm with 31 offices across the world.

Series A Convertible Pref Term Sheet by AllBusiness

This is a long form annotated Venture Capital Term Sheet, proposing deal terms for investment by a venture capitalist in an early stage company. It is for a Series A Convertible Preferred Stock round of financing.  It has been developed by AllBusiness, a large online repository of resources for small businesses.

Pref Stock Term Sheet for strategic investment by AllBusiness

This is a very detailed term sheet for a prospective Preferred Stock investment in a private company, coupled with a strategic agreement and warrants. This tends to be very pro-investor oriented and is more detailed than most term sheets. It has been developed by AllBusiness, a large online repository of resources for small businesses

VC Bridge Note Term Sheet by AllBusiness

This is a form of convertible promissory from a venture capitalist to a company. It allows for a short term loan pending completion of an equity round of financing. The accrued interest and principal on the note will convert into the purchase of stock in the equity financing. It has been developed by AllBusiness, a large online repository of resources for small businesses.

Model Legal Documents
British Venture Capital Association

Articles of Association

Subscription & Shareholders’ Agreement

Singapore Venture Capital Association

Series A Subscription Agreement 

Series A Shareholders Agreement 

NDA

CARE agreement (Pre-Series A)

 
 

Private Equity

Term Sheets
Private Equity Term Sheet

Sample Private Equity term sheet template from the online public Companion Materials for legal text book “Venture Capital and Private Equity Contracting, an International Perspective”.

PE Terms Primer

Online financial training platform that provides a basic primer on private equity terms.

Term Sheets for Latam PE Deals

Term Sheets developed for Latin American private equity and venture capital fund managers and investors by multiple industry partners.

PE Term Sheet for Strategic Partnership

A sample term sheet for an equity investment coupled with a strategic partnership by AllBusiness, a large online repository of resources for small businesses.

M&A Term Sheet

This is a very detailed long form term sheet setting out proposed terms for the sale of a company. The orientation of the form is pro-selling company. This is much more detailed than typical letters of intent and term sheets, so that all key points would be negotiated before the selling company is locked up in an exclusivity period. Developed by AllBusiness, a large online repository of resources for small businesses.

Model Legal Documents
Companion Materials from legal text book “Venture Capital and Private Equity Contracting, an International Perspective”
AllBusiness, a large online repository of resources for small businesses
SECA, Swiss Private Equity and Corporate Finance Association
 

Mezzanine

Term Sheets
Revenue Share Agreement

Sample revenue share agreement from Village Capital, Social Impact Accelerator.

Revenue Share Agreement

Sample revenue share agreement from Gray Matters Capital is an impact investing foundation

Due Diligence Questionnaire

ILPA Due Diligence Questionnaire (ILPA DDQ) was designed to ease the administrative burden placed on private equity LPs and GPs by standardizing the most frequent and important diligence questions posed by investors.

Due Diligence

Checklist

Here is a checklist to help fund managers comprehensively diligence a potential investment.

Portfolio Company 100-day Plan

The first 100 days after a private equity firm takes ownership of an asset are critical to long-term value creation. During those early months, private equity firms can follow several practical suggestions to kick-start growth.

Fund 100-Day Plan

The foundation for sustainable investment returns in private equity has always been improved operating performance. Businesses where efficiencies are created, margins are improved and innovative growth strategies are employed – in other words businesses that are demonstrably enhanced under private equity ownership – achieve higher valuations upon exit. Historically, these initiatives have often boiled down to concrete steps taken early in the life of an investment, such as improved sourcing strategies, lean manufacturing, Six Sigma and de-layering. This has resulted in the concept of the ‘100-day plan’ playing a central role in private equity industry parlance, particularly when discussing operating improvements.