Term Sheet: Indemnification and Assignment

Given all the shareholder litigation in recent years, there is almost no chance that a company will get funded without indemnifying its directors. One can usually negotiate away insurance in a Series A deal, but for any follow-on financing, the major practice today is to procure director and officer (D&O) insurance. Assignment provisions allows venture funds to transfer between funds and make distributions to their limited partners (their investors). This is something companies must normally live with and is a term that is rarely availed upon by investors.

 

(Full Post: http://www.feld.com/wp/archives/2005/08/term-sheet-indemnification-and-assignment.html


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Brad Feld

Brad Feld has been an early stage investor and entrepreneur since 1987. He is currently a Managing Director at Foundry Group. Prior to co-founding Foundry Group, he co-founded Mobius Venture Capital and, prior to that, founded Intensity Ventures. Brad is also a co-founder of TechStars.

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Filed Under:
Collection: Funding
Category: Term Sheet Terms