InSITE fellows from the Stanford and UC Berkeley chapters gathered at Orrick in Menlo Park for a mock term sheet and happy hour on Wednesday March 4th. They were joined by several InSITE alumni and InSITE chairman Paul Tumpowsky.
Owen Kirshner and Harold Yu of Orrick led the discussion using an example term sheet. Main topics included vesting schedules on co-founders’ shares, convertible notes and potential misalignment of incentives due to convertible note financing, dilution, and the importance of board composition.
Manu Kumar founder of K9 ventures presented the investor perspective on term sheets and shared his criteria and approach. He shared some of the advice he gives to founders, such as avoiding signing a term sheet on Friday evening despite pressure to do so, since most VC meetings happen on Monday morning. You can check out Manu’s blog at http://www.k9ventures.com/blog/.
This is the second mock term sheet event that Orrick hosts for InSITE fellows in Silicon Valley. This time attend by two InSITE chapters which continue to expand. InSITE fellows from law, business, and engineering were part of the event.
Thanks to Owen and Harold (Orrick) and Manu (K9 Ventures) for leading an insightful discussion and hosting a great InSITE event.
Bushra Bataineh is a Graduate Student and research fellow at Stanford University and an InSITE Fellow. Her research is on on global public private partnerships in the water sector.