Cornell Prof backs Adeo Ressi's term sheet
- 00:09:57
- Vator TV
Cornell Prof backs Adeo Ressi's term sheet
"It's hard to see why all these quirks make any sense, except fooling naïve entrepreneurs" Adeo Ressi’s on a mission to save entrepreneurs from the “atrocities of investors.” Yesterday, he published his “ideal term sheet”—an attempt to standardize VC deal terms that’s getting a lot of play in the WSJ, TechCrunch, Fred Wilson, and Chris Dixon. Among the key provisions are the elimination of participation with preferred stock, a 1x liquidation preference, and single-trigger vesting acceleration on acquisition. See TC for a good breakdown of what these mean. Turns out Adeo has backers in the Academy. "A standard term sheet is a great idea,” says Ola Bengtsson, Assistant Professor of Finance and Entrepreneurship at Cornell University, whose research focuses on differences in how U.S. VC contracts are structured. “My work shows that there is so much ... [ Read more ]
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Vator TV | August 25, 2009
