Term Sheet Battle – organized by SBC Amsterdam on June 5th at Het Werktheater in Amsterdam – attracted a full house with 100+ startups. The meeting was a stimulation of a live negotiation between a real investor and a real entrepreneur.
A term sheet lays the groundwork for ensuring that the parties involved in a business transaction are in agreement on most major aspects of the deal and includes global conditions for loans. It also ensures that expensive legal charges involved in drawing up a binding agreement or contract are not incurred prematurely. Rules about who is in control, such as the composition of the board and who has the first right to take over shares are included.
Investor vs Entrepreneur
Ron Belt, Managing Partner at BlueMind Corporate Finance Strategy, played the role of “The Investor” and was supported by Ayolt Zoer (Corporate Law layer at VMWTaxand). The role of “The Entrepreneur” was played by Reinout te Brake, Founder of iQU.com. Reinout was supported by Georg van Daal, who also is a Corporate Law lawyer at VMWTaxand. US securities lawyer with years of experience from deals on both sides of the table – Brad Furber – took on the role of “The Referee” and SBC Amsterdam’s co-founder, Patrick de Zeeuw was “The Master of the Ceremony“.
The event was a big success. But don’t take our word for it. This is what some of the guests had to say about the Term Sheet Battle meeting.
Micha Hernandez van Leuffen, Cofounder and CEO at Wercker
The term-sheet battle was very insightful in highlighting the sticking-points in a term-sheet negotiation, especially with regards to the nuances in EU and US conditions.
HannahVera VanDrunen, serial networker & business connector
Most certainly the best startup event in Amsterdam this month was the Term Sheet Battle. I’m hereby already signing up for the next. Why? First and foremost the quality of the performers. The startup founder as well as the venture capitalist and the referee were highly impressive in the way they showcased what a term sheet battle can be like. Secondly, the variety of the attendees. While Startup Bootcamp initiated this, top performers from all over the country attended because they really felt they could learn something. Finalists from the Philips Innovation Awards, startupfounders from not only Startup Bootcamp ofcourse, but also Rockstart, Startup Weekend as well as Lean Startup Machine built the audience. What I felt was most strikening were the comments of the lady sitting next to me. When I asked her how she experienced it, she said “well, this is exactly how we do it” and “they (the founders) always say that (it’s not fair!), they should just get over it and learn it’s business”. On some of the founders the TSB had such an impact, that they immediately decided they’d never want to go with a venture fund. Others talked with the vc and were even more convinced how important it is to negociate good terms. One of them said “it’s better to get yourself a good launching customer on board as an investor. They know they need your product, so to them the return already is in the discount. And the funny thing is, most of them are not even aware they’re acting like vc’s.” This is exactly what it taught me. There are emotional founders and there are rational founders. Whichever is the case, ensure yourself you’re aware of who’s making the decisions… and why. Many thanks to SBC Amsterdam for creating awareness amongst startupfounders. This is exactly the type of events young entrepreneurs need. Those who can, teach – at its finest.
Peter Krijnsen, Partner at PulseFinance
I was stunned by the progress candidates have made in a couple of weeks time. For example DoctorKinetic with short movie of the patients problem they solve with their solution. A ‘warm’ and effective message compared to storytelling.
Marjon Leggedoor, Corporate Development at TMG
Startup Bootcamp Amsterdam organized an interesting Term Sheet Battle. It’s a good initiative to educate entrepreneurs more about the corporate view of deals. The before and after drinks made it possible to meet the different entrepreneurs and discuss further.