Venture capital company and founders of venture

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Reference no: EM132068989

True or false:

1) The term sheet between a venture capital company and the founders of a venture will specify the share of the company being sold and the price it is being sold for.

2) An example of a restrictive covenant in a term sheet would be one that prevents founder from leaving the business to start another business for a set period of time and/or while the founder owns a certain percentage of the company.

3) Term sheets are used to work out the natural financial and control tensions that exist between founders and venture capitalists. The specifics of a term sheet will vary from deal to deal.

4) The exclusivity clause in a term sheet will constrain the founders from shopping the deal around while a Venture Capital frim is decoding weather to invest or not.

Reference no: EM132068989

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