This case study introduces students to the nuances of deal structuring between company founders and venture capital firms. Specifically, the learning objectives for the case exercise include the following: (1) apply the venture capital method to value entrepreneurial ventures and structure...

The traditional approach to evaluating investments in emerging economies has been to add a political default premium to the discount rate used to evaluate the investment's net present value. This approach contrasts with the textbook approach that accounts for political risk by adjusting expected...

Liquidation preference and participation rights are common features of term sheets involving the use of preferred stock in venture financing. Both these features are typically found in venture financing term sheets and enhance the position of the venture investor compared to company founders....