Termsheet Basics #2: Negotiating with Angel Investors – POCC Event – 12th Feb

Update: This event has been re-scheduled for 12th Feb. All other details remain the same

Santosh Dawara writes:

The Pune Open Coffee Club is hosting an informative session on “Term Sheet Basics II: Negotiating with Angel Investors”.

Date: 12th February, 2011, 4pm (Saturday)
Venue: Bhageerath, Persistent, SB Road.

Entrepreneurs who are preparing to raise money from Angels can benefit immensely from a direct one-on-one interaction with attending Angels and experienced Entrepreneurs. The session will cover basic concepts that are unique to Angel investing such as ‘Convertible Debt’, common concepts such as ‘Valuation’, what preparation can help you increase your effectiveness and what to expect when you begin negotiations with an Angel.

This should be an exciting session as Angel Investing has subtle nuances as compared to other forms of institutional finance.

As an entrepreneur – will you prefer an equity round or a convertible note round – which is preferred by whom and why? What does participating preferred mean, and how does the math work in an exit scenario? What kind of anti-dilution protections are there and what are the differences? Do VC’s prefer to offer exits to early Angel Investors?

These and many other questions are encountered by investors and entrepreneurs alike every day. The session will introduce these concepts and considerations in order for you.

Presented by dynamic speakers and active angel investors, with extensive experience in venture creation, this session is a must for those focused on building or investing in new ventures.

The high level agenda will be as follows:

  • 1600 to 1630 Introduction to attending Angels
  • 1630 to 1715 Walk-through an actual term sheet template or memorandum of understanding
  • 1715 to 1730 break for tea / coffee
  • 1730 to 1830 Discussion, QnA between attending entrepreneurs and angel investors
  • 1830 to 1930 Networking

Here are some of the high level topics we can cover:

  • equity types and convertible loans
  • how much should be raised
  • pre-money, post-money, price per share – valuation vs. other incentives, pre and post cap tables
  • liquidation preferences
  • anti dilution provisions
  • protective provisions
  • post funding board composition
  • setting up the option pool
  • some key tips to entrepreneurs and to investors (not necessarily the same tips!)
  • negotiation tips and a mock negotiation if time permits


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