Which three key assymetries between principal and agent are described between the two acteurs in VC?
What is a common handling of investors to implement bonus or malus agreements?
Allowing investors to _____
One way to implement ratchets is a bonus or malus agreement. This agreement allows investors to convert debt into stock at predefined objectives.
Situation: Value of the startup-company, post-money: $24mn. The Venture capitalist invests $6mn, $4mn as stock and $2mn as convertible debt, tied to milestones (ratchet). The milestones were not reached. What happens to the VCs equity stock?
The VC's equity stock increases from 16.6% (4/24) to 25% (6/24)
What is it targeting at? Who is it for?
Sometimes in case of _______
Prevent the investment from proceeding if ______? List up three!
Which conditions need special attention? List up three!
Punkt 3: employment agreements signed by founders still need to be accepted by investors
With what can the term sheet be transformed into a binding contract?
As a founder you have to sign what (has to do with the situation that you could step back from the company)?
Who pays monitoring and transaction costs and why?
What are the key terms, conditions and rights? List up the contratcional element, the addressed content and the potential effects or hazards!