Matt Marshall writes about the tough term sheets that VC’s are using in their financings with entrepreneurs in the current climate.
See also the Fenwick and West venture capital terms survey results. Their summary conclusions:
It’s still a very difficult financing environment, with historically high use of senior and multiple liquidation preferences, ratchet anti-dilution and pay-to-play provisions. Nevertheless Q2 does seem to indicate a slight softening in terms compared to Q1, and a slight improvement in the ratio of up-rounds to down-rounds.
Today’s Wall St. Journal also has an good article about how to win the favor of venture capitalists.
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