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Fundraising Simulator

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Topic 8, Lesson 5
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Examples of negotiating factors

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Well done for sending your list of negotiating factors to your CEO.

There are many different negotiating factors that you may consider, including:

  1. The company valuation;
  2. The amount of shares issued to the investor in exchange for the funds;
  3. The ratio of the equity versus mezzanine debt
  4. The loan note interest rate;
  5. The loan note default interest rate level;
  6. The loan note default conversion price;
  7. The loan note repayment period;
  8. The loan note conversion triggers;
  9. The loan note redemption clause;
  10. The loan note financial covenants;
  11. The size of the arrangement fee;
  12. The role that your investor will play in the Board room;
  13. The level of business support that your investor will provide; and
  14. The timings of the funding drawdowns.

On this occasion, you are unable to negotiate any of the terms further and you therefore proceed toward finalizing the deal.