How Investors Structure Investments
Venture Capital Deal Terms
(Slide 39  of 50)

• While venture capitalists use a variety of structures in their funding activities, a familiarity with certain deal structuring provisions which are commonly used can help your company deal more effectively with investors.
• Investors frequently prefer to purchase convertible preferred stock, convertible debentures or debentures with warrants.
• These securities give investors preferences over common shareholders and the ability to convert into common stock.
• These securities contain control and liquidity components not found in common stock.
• Antidilution provisions attached to these securities protect investors from the adverse consequences of later stock sales at lower prices.

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