#+title: Section 15 | Lesson 81 - Important Investment, Great Marketing
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* Links
- [[./../mba-main.org][TOC | Business]]
- [[https://www.udemy.com/course/an-entire-mba-in-1-courseaward-winning-business-school-prof/learn/lecture/4307066#overview][S15:L81 course video]]

* notes

** term sheet
- non binding
- basic terms
- you can do it for free

** chat explanation

*** Purpose
- Non-binding summary of key terms before drafting full legal contracts.
- Serves as a blueprint for the final agreement.

*** Common Use Cases
- Startup investments (VC/angel funding)
- Mergers and acquisitions (M&A)
- Partnerships and joint ventures
- Large financing deals
- Real estate or major service agreements

*** Key Sections in a Term Sheet
**** Valuation & Investment
- Company valuation
- Amount to be invested
- Price per share / equity percentage

**** Rights & Governance
- Board seats
- Voting rights
- Investor protections or veto rights

**** Founder & Team Provisions
- Vesting schedule
- Roles and responsibilities
- Restrictions (e.g., non-compete, full-time requirement)

**** Financial Terms
- Liquidation preference
- Dividends (if any)
- Anti-dilution protections

**** Exit & Transfer Terms
- Rules for selling the company
- Buyout scenarios
- Rights of first refusal / co-sale rights

**** Legal & Administrative Terms
- Closing conditions
- Due diligence requirements
- Timelines for completing the deal

*** Binding vs Non-Binding
- Most of the document is *non-binding*
- Binding parts typically include:
  - Confidentiality
  - Exclusivity / no-shop clause
  - Dispute resolution

*** Why a Term Sheet Matters
- Aligns expectations early
- Reduces legal costs
- Prevents misunderstandings
- Speeds up negotiation and contract drafting


** minimal structure for a term sheet
1. Parties
2. Purpose of agreement
3. Investment amount / contribution
4. Ownership or percentage rights
5. Governance (decision-making, voting)
6. Financial terms (profit split, dividends)
7. Restrictions (non-compete, full time, IP ownership)
8. Exit terms (what happens if someone leaves)
9. Timeline / closing conditions
10. Binding clauses (confidentiality, exclusivity)