85 lines
2.2 KiB
Org Mode
85 lines
2.2 KiB
Org Mode
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#+title: Section 15 | Lesson 81 - Important Investment, Great Marketing
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#+HTML_HEAD: <link rel="stylesheet" type="text/css" href="../_share/media/css/org-media-sass/categories/business.css" />
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#+OPTIONS: H:6
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* Links
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- [[./../mba-main.org][TOC | Business]]
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- [[https://www.udemy.com/course/an-entire-mba-in-1-courseaward-winning-business-school-prof/learn/lecture/4307066#overview][S15:L81 course video]]
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* notes
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** term sheet
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- non binding
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- basic terms
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- you can do it for free
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** chat explanation
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*** Purpose
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- Non-binding summary of key terms before drafting full legal contracts.
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- Serves as a blueprint for the final agreement.
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*** Common Use Cases
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- Startup investments (VC/angel funding)
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- Mergers and acquisitions (M&A)
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- Partnerships and joint ventures
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- Large financing deals
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- Real estate or major service agreements
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*** Key Sections in a Term Sheet
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**** Valuation & Investment
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- Company valuation
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- Amount to be invested
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- Price per share / equity percentage
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**** Rights & Governance
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- Board seats
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- Voting rights
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- Investor protections or veto rights
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**** Founder & Team Provisions
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- Vesting schedule
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- Roles and responsibilities
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- Restrictions (e.g., non-compete, full-time requirement)
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**** Financial Terms
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- Liquidation preference
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- Dividends (if any)
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- Anti-dilution protections
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**** Exit & Transfer Terms
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- Rules for selling the company
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- Buyout scenarios
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- Rights of first refusal / co-sale rights
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**** Legal & Administrative Terms
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- Closing conditions
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- Due diligence requirements
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- Timelines for completing the deal
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*** Binding vs Non-Binding
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- Most of the document is *non-binding*
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- Binding parts typically include:
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- Confidentiality
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- Exclusivity / no-shop clause
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- Dispute resolution
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*** Why a Term Sheet Matters
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- Aligns expectations early
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- Reduces legal costs
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- Prevents misunderstandings
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- Speeds up negotiation and contract drafting
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** minimal structure for a term sheet
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1. Parties
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2. Purpose of agreement
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3. Investment amount / contribution
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4. Ownership or percentage rights
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5. Governance (decision-making, voting)
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6. Financial terms (profit split, dividends)
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7. Restrictions (non-compete, full time, IP ownership)
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8. Exit terms (what happens if someone leaves)
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9. Timeline / closing conditions
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10. Binding clauses (confidentiality, exclusivity)
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