Section outline

  • The third major deal element deals with broader aspects of the governance of the new venture. Key issues are the allocation of control between the entrepreneur and the investor as well as the incentivization of the entrepreneurial team. 

    In the context of control terms, this course section discusses the following main topics:

    • Investors' voting and information rights
    • Board representation
    • Performance-dependent governance provisions

     

    With respect to employment terms, the main topics will be:

    • Pool of reserved shares
    • Vesting of founder and employee shares
    • Key person insurance
    • Non compete clauses, confidentiality, proprietary information, and invention agreements.

    • This section's reading assignment and review questions are listed below:

    • Reading: Corporate Governance Provisions Book
      Students must
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    • Quiz: Corporate Governance
      Students must
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      Receive a grade