Term sheet negotiations for VC investments happen behind „closed doors“. The extent to which terms can be negotiated varies among VC funds but there are certain core terms that form the basis of every VC investment. VCs have a much larger knowledge of these terms and experience in negotiating than founders do. Our simulated term sheet negotiation helped leveling this playing field.
Our three speaker Robin Eyben (Partner, Osborne Clarke), Ute Mercker (Investment Director, IBB) and Terence Hielscher (Founder and CEO, MoBerries) started with a short introduction before the simulated negotiation of the term sheet for a Seed Financing Round started. During the term sheet negotiation they were taking the audience through a discussion of many different legal provisions from the point of view of the startup, and from the investor’s side. At the end of the negotiation the participants had the chance to ask their questions which the speakers answered to everyone’s satisfaction.
The participants got an exclusive insight in this kind of negotiations and it helped them to better understand the different interests of the parties. It gave them an idea how important it is to deal with this topic extensively and to research unclear terms before entering into such negotiations. Especially the discussion of the different parties pointed out, that it is necessary to clarify every single topic with patience to come to a successful contract.