Common Unicorn Deal Terms: It’s Not All About Valuation

In this interview with Jeremy Glaser, who is a partner at the law firm Mintz Levin and also serves as Co-Chair of the firm’s Venture Capital & Emerging Companies Practice, we discuss common unicorn deal terms in a financing. It’s not all about valuation.

Jeremy says, “You’re right about the importance of terms versus valuation. The example I love to give people is what’s happened with the unicorns, these companies that had billion-dollar valuations. There was so much focus on having a billion-dollar valuation that, unfortunately, a lot of companies didn’t focus on the terms of those financings. In particular, the term that was most painful, given what’s happened in the public markets, is the anti-dilution protection, or what we call a ratchet.”

Also see, How to Build a Unicorn from Scratch and Walk Away with Nothing.

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This is Patrick Henry, CEO of QuestFusion, with The Real Deal…What Matters.

This article originally appeared in QuestFusion.