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Hi, I’m Brad Feld, a managing director at the Foundry Group who lives in Boulder, Colorado. I invest in software and Internet companies around the US, run marathons and read a lot.

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Revisiting the Term Sheet

Comments (17)

In 2005, my partner Jason Mendelson and I wrote a long series of posts describing all of the parts of a typical venture capital Term Sheet.  We started on 1/3/05 with a post on Price and finished up on 8/23/05 with a post on Indemnification and Assignment

Of all of the stuff I’ve written over the past four years, my stats continue to tell me that stuff we wrote in the Term Sheet series is some of the most popular content on my blog.  As I was writing my post I Blog, I Tweet, But Why I realized that many of you have started reading my blog after 1/1/06 so you might have missed this series.

We’ve seen this series used as the base for a number of college courses, we’ve been thanked by people all over the world for writing it, and we’ve been encouraged to publish a version of it in book form.  Maybe someday we will get around to it, but for now it’s still relevant as an original web based life form. 

For quick reference, following are the key posts:

While the 24 references are a bit dated (we might use Lost or Weeds this time around), I hope you will also enjoy (or at least forgive us for including) a little bit of Jack Bauer.

17 Comments on “Revisiting the Term Sheet”

  • Jackson Miller June 3rd, 2008 7:18 am

    That is a really helpful series. Is there a way you would be willing to do a series about the materials you expect to see from the entrepreneur? A post on projections / cash flow analysis would be really helpful to me.

  • Brad Feld June 3rd, 2008 8:11 am

    Great suggestion. On the list for future posts.

  • Art June 3rd, 2008 3:29 pm

    Any chance you could pull all the pieces together into a single document? I'd like to save and share it more easily.

  • Brad Feld June 3rd, 2008 3:34 pm

    Click on the link in the right sidebar below the Recent Readers map titled “Download My Content.” Choose the Category “Term Sheet” and whatever other options you want. That should do it.

  • Alexander Muse June 10th, 2008 10:26 pm

    Thanks for posting these again, these are some of the best resources on the topic anywhere.

  • Kehong Woo June 12th, 2008 2:48 am

    Hi Brad, I thought you should look very serious and business-like. And i am happy to see actually you don't… haha… / Kehong from China

  • Yuri Ammosov December 26th, 2008 2:09 am

    I try to follow VESTING link in the series list above. Instead, LIJIT.COM replies that "nothing is found". Your blog page is seen but the CONTENT container is empty. Sorry for not being able to pinpoint the issue further.

  • Yuri Ammosov December 26th, 2008 2:34 am

    Brad: tnx. Great to have them restored. You know, I am a professor of entrepreneurship at Moscow's Fiztech (aka Russia's MIT), and I keep using your series as one of teaching materials ever since they were first published. Even though they are totally irrelevant, as none of my students stands a chance to be venture funded, they are still great to see into the funding process and goals.

  • Brad Feld December 26th, 2008 2:41 am

    Wow – very cool! Glad to be helpful.

  • Yuri Ammosov December 26th, 2008 2:47 am

    Brad: your texts are simply good stuff so thank you. The Term Sheets manual is more thorough of course but students simply cannot get it – its way over their heads. So we need something popular and plain.

    How soon do you think the VC funds will be back to look at round 1 deals for first time entrepreneurs? 1 year, 2 years, 5 years, never again?

  • Brad Feld December 26th, 2008 2:51 am

    We are actively doing first round investments right now – most of our new investments (which you can see on http://www.foundrygroup.com) are first rounds. A number of the early stage firms (e.g. Union Square Ventures, First Round Capital, Spark Capital, True Ventures) are very active right now. The notion that early stage investing isn’t happening is a misperception.

  • Yuri Ammosov December 26th, 2008 3:04 am

    And do you also imply first-time entrepreneurs in their 20s?

  • Yuri Ammosov December 26th, 2008 3:14 am

    *sign* Good to have so much risk-conscious capital. In Russia, it's FFF or nothing until your company gets a positive cash flow.

  • Yuri Ammosov December 26th, 2008 11:31 am

    Brad: the links look broken. Is the series relocated anywhere?

  • Brad Feld December 26th, 2008 11:37 am

    They seem to be working for me. Can you tell me more about the problem you are having.

  • Yuri Ammosov December 26th, 2008 2:09 pm

    I try to follow VESTING link in the series list above. Instead, LIJIT.COM replies that “nothing is found”. Your blog page is seen but the CONTENT container is empty. Sorry for not being able to pinpoint the issue further.

  • Brad Feld December 26th, 2008 2:14 pm

    Yup – I’m seeing that problem on http://www.feld.com/archives/2005/05/term_shee… Looks like I’ve got a page mapping problem on some of the archive pages. Thanks for finding this.

    I’ll try to hunt it down and fix it.

  • bfeld December 26th, 2008 7:14 am

    Yup – I’m seeing that problem on http://www.feld.com/archives/2005/05/term_shee… Looks like I’ve got a page mapping problem on some of the archive pages. Thanks for finding this.I’ll try to hunt it down and fix it.

  • Yuri Ammosov December 26th, 2008 2:34 pm

    Brad: tnx. Great to have them restored. You know, I am a professor of entrepreneurship at Moscow's Fiztech (aka Russia's MIT), and I keep using your series as one of teaching materials ever since they were first published. Even though they are totally irrelevant, as none of my students stands a chance to be venture funded, they are still great to see into the funding process and goals.

  • Brad Feld December 26th, 2008 2:41 pm

    Wow – very cool! Glad to be helpful.

  • Yuri Ammosov December 26th, 2008 2:47 pm

    Brad: your texts are simply good stuff so thank you. The Term Sheets manual is more thorough of course but students simply cannot get it – its way over their heads. So we need something popular and plain.

    How soon do you think the VC funds will be back to look at round 1 deals for first time entrepreneurs? 1 year, 2 years, 5 years, never again?

  • Brad Feld December 26th, 2008 2:51 pm

    We are actively doing first round investments right now – most of our new investments (which you can see on http://www.foundrygroup.com) are first rounds. A number of the early stage firms (e.g. Union Square Ventures, First Round Capital, Spark Capital, True Ventures) are very active right now. The notion that early stage investing isn’t happening is a misperception.

  • Yuri Ammosov December 26th, 2008 3:04 pm

    And do you also imply first-time entrepreneurs in their 20s?

  • bfeld December 26th, 2008 8:08 am

    Yup – we’ll invest in first time entrepreneurs who are in their 20’s. Fred Wilson at Union Square Ventures has a number of these types of investments also, including Etsy and Tumblr, and has written pretty extensively on his philosophy about entrepreneurs and age on his blog at http://www.avc.com.

  • Brad Feld December 26th, 2008 3:08 pm

    Yup – we’ll invest in first time entrepreneurs who are in their 20’s. Fred Wilson at Union Square Ventures has a number of these types of investments also, including Etsy and Tumblr, and has written pretty extensively on his philosophy about entrepreneurs and age on his blog at
    http://www.avc.com.
    />

  • Yuri Ammosov December 26th, 2008 3:14 pm

    *sign* Good to have so much risk-conscious capital. In Russia, it's FFF or nothing until your company gets a positive cash flow.

  • bfeld January 7th, 2009 1:55 am

    Great suggestion. On the list for future posts.

  • bfeld January 7th, 2009 1:55 am

    Click on the link in the right sidebar below the Recent Readers map titled “Download My Content.” Choose the Category “Term Sheet” and whatever other options you want. That should do it.

  • alexander_45451 January 7th, 2009 1:55 am

    Thanks for posting these again, these are some of the best resources on the topic anywhere.

  • Kehong Woo January 7th, 2009 1:55 am

    Hi Brad, I thought you should look very serious and business-like. And i am happy to see actually you don't… haha… / Kehong from China

  • Art January 7th, 2009 1:55 am

    Any chance you could pull all the pieces together into a single document? I'd like to save and share it more easily.

  • jaxn January 7th, 2009 1:55 am

    That is a really helpful series. Is there a way you would be willing to do a series about the materials you expect to see from the entrepreneur? A post on projections / cash flow analysis would be really helpful to me.

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