Understanding Investor Term Sheets: SAFEs, Notes, and Equity Financing

Our panel of experts from Varnum and Northern Michigan Angels will discuss the various options and emerging trends for structuring financing rounds, including valuation caps, discounts, and conversion rights for convertible debt and SAFEs. We’ll also cover pre-money valuations, liquation preferences, voting rights, board seats, and other material terms for equity financings.

Who should attend:

Entrepreneurs, business owners, and new investors

You will learn:

• What type of financing structure and terms are customary based on a company’s development stage
• Tips on how to avoid common mistakes

Event format:

This is a hybrid event – attend in person at 20Fathoms or virtually. Please register.

About the presenters:

Matt Bower is a partner at Varnum LLP and head of the firm’s Ann Arbor office. He serves as outside general counsel to a wide range of emerging and middle market companies, with a particular focus on software, SaaS, information technology, IoT, data analytics and other technology-based companies. In addition, Matt advises on capital fundraising, including SAFE financing, convertible debt, preferred equity financing, as well as securities law compliance. He works closely with companies from cradle (formation and organization) to liquidity (sale or merger) and all stages of development in between. Matt’s experience in the early-stage capital markets includes fund representation, fund formation and investments. Matt is a graduate of the University of Michigan and the Benjamin N. Cardozo School of Law.

Bradley Matson is the Administrative Director at Northern Michigan Angels. He is a Traverse City native with over 20 years of entrepreneurship experience building startup ecosystems in Tucson, Montreal, Miami Beach, and Seattle. Founder of CoWharf, the first coworking office in the city, the inaugural TC Startup Weekend and Beta Batch, the area’s first startup accelerator, he’s no stranger to the local startup scene.

Steve Lang is a member of the Board of Directors at Northern Michigan Angels. He has a breadth of business experience including insurance company executive management, human resource management, sales and marketing, and board experience in both for-profit and not-for-profit settings. Steve is the retired Chair and Chief Executive of Homesteaders Life Company where he continues to serve on the Board of Directors and Chair of the Investment Committee. Prior to this, Steve spent 21 years helping to start and grow Forethought Financial Services where he served as Chief Executive of this now $4 billion life insurer. The first 10 years of his career was spent in the energy industry as a human resource specialist covering fields of compensation, employee relations, organization planning, and executive training. Steve holds his master’s degree from the Michigan State University School of Human Resource Management and Labor Relations.