Deal Terms - The Finer Points of Venture Capital Deal Structures, Valuations, Term Sheets, Stock Options and Getting VC Deals Done (Inside the Minds) (Paperback)

~ Alex Wilmerding (Author), Aspatore Books Staff (Author), Aspatore.com (Author) "Every entrepreneur who aspires to raise capital looks forward to ""talking valuation"" with potential investors..." (more)
Key Phrases: convertible promissory notes, stock restriction agreement, term sheet, Reserved Shares, Sarah Reed, Ginny Davis Wilmerding (more...)

Editorial Reviews

Review

"Deal terms are a huge issue for most entrepreneurs; this is a really important resource." Andrew McKee, General Partner, Webster Capital
-An indispensable reference for entrepreneurs and finance professionals--, Clifford Schorer, Entrepreneur in Residence, Columbia Business School
-Deal Terms provides critical, in-depth, first-hand perspective on the crucial terms and factors which influence financing decisions for venture investors and early and expansion stage companies. It is an excellent follow-on to Wilmerding-s first book.- Graham Anderson, General Partner, Euclid SR Partners --This text refers to the Kindle Edition edition.

Product Description

Deal Terms is the first ever in-depth look at valuations, preferred stock, stock options and other variables that affect deal structure, written by Alex Wilmerding (a venture capitalist at Boston Capital Ventures and best selling author of Term Sheets & Valuations). Written from a venture capital perspective, however applicable for all types of financings, Deal Terms includes actual term sheets, valuation methodology and analysis, assessment of stock option programs and their impact on valuations and capital structures and other real world documents used by leading venture capitalists and lawyers analyzed from multiple perspectives. A must have book for any executive, entrepreneur, or financial professional, this timeless classic is an unprecedented resource that will help you avoid costly mistakes, understand various structures and terms, and understand wording and language from other deal sheets to help you get deals done.

According to Graham Anderson, General Partner at Euclid SR Partners, "Deal Terms provides critical, in-depth, first-hand perspective on the crucial terms and factors which influence financing decisions." Clifford Schorer, Entrepreneur in Residence, Columbia Business School remarks, "Deal Terms is an indispensable reference for entrepreneurs and finance professionals." And Andrew McKee, General Partner at Webster Capital notes, "Deal Terms is a really important resource."

See all Editorial Reviews

Product Details

• Paperback: 220 pages
• Publisher: Aspatore Books (January 1, 2006)
• Language: English
• ISBN-10: 1587622084
• ISBN-13: 978-1587622083
• Product Dimensions: 8 x 5.1 x 0.6 inches
• Shipping Weight: 11.5 ounces (View shipping rates and policies)
• Average Customer Review: 4.2 out of 5 stars  See all reviews (10 customer reviews)
• Amazon.com Sales Rank: #131,701 in Books (See Bestsellers in Books)

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Customer Reviews

Most Helpful Customer Reviews

70 of 73 people found the following review helpful:

2.0 out of 5 stars Passable guide, but certainly not a reference book, February 21, 2003

By	Greens808 (New York, NY United States) - See all my reviews

A very brief and concise view of venture capital structures, but also somewhat basic in content. Examples could use more details (e.g., the sample weighted average anti-dilution calculations).

Disappointed that the author does not address more complicated security structures other than common and straight convertible preferred. Also, I was surprised given the recent publication date that there was not a comparison on how deal terms have changed from the dot-com boom and bust.

Certainly not a must have book for my bookshelf.

Sahlman's Entrepreneurial Venture is a much better "reference" book and cheaper too.

22 of 22 people found the following review helpful:

5.0 out of 5 stars Direct to the Deal Terms, March 26, 2004

By	dean_from_sa (Plano,TX) - See all my reviews

This book has a few sample drafts of term sheets and other legal documents. That is not the primary focus of this book. You can hire that kind of talent (legal drafting) on a per hour basis. This book helps the owners make the BUSINESS decisions necessary to avoid hamstring their new venture during this difficult passage. Included is information about what to pay your independent directors, advisory board members and senior management. Also included is what percentage of the company the founders should expect to keep, how to avoid excessive dilution during an unfortunate down round and how to present your opportunity to potential investors. All of these BUSINESS decisions are beyond the discretion of attorneys in this area, they typically instruct the entrepreneur to reflect upon the topic and then the attorney will draft it to suit.

Wilmerding interviews individuals that are representative of players an entrepreneur will encounter in getting his business funded. These real world examples of how business (strategy) items are handled or viewed by third parties are the best part of his book.

18 of 21 people found the following review helpful:

1.0 out of 5 stars Very Disappointed, May 14, 2006

By	Steve Johnson "SJ" (San Jose) - See all my reviews

After enjoying his first book, Term Sheets and Valuations, I was looking forward to this one. I regret to say that I found it a big waste of time and a bigger waste of money.

It appears as if the marketing of the book by the pblisher sought to take advantage of his first book by raising the price by 500%, giving the impression that this book was better or more comprehensive. However, nothing could be further from the truth.