My friend asked me to read this book in order to understand how the VC industry works. I must say, I wasn't disappointed with the quality and quantity of content put forth by Brad Feld and Jason Mendelson, who are a VC and a VC lawyer respectively.
Venture Deals is segmented into two parts: explaining the term sheet, and other things to take note of. The term sheet refers to a non-binding document containing all the terms before a VC invests into a startup. Other things to take note of includes: how VC funds work, negotiation tactics, how to raise money, and legal issues.
The term sheet
Terms in the term sheet belong to two categories: economic and control. Economic refers to how the VC will receive benefits and how they are protected against certain economic events. Control refers to the rights given to VC so that entrepreneurs will not ......