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.
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.
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
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 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
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.
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.