Whether you’ve only recently decided to seek out capital for your business or you’ve already received (or made) your first offer, the term sheet (or “letter of intent”) is an integral part of the process. In this series we’ll look to shed some light on the legal language contained in that term sheet by taking a “deep dive” into the most often used terms and how choices made in selecting those terms can affect both Company and Investor. Check out an overview here.
It is probably no surprise that those putting thousands or even million dollars into a company often want some ability to “direct” that company’s affairs. Such is one of the primary rights given by a company to its investor partners when it accepts investor funds.
Today we’ll be discussing board representation.