In order to safeguard the opportunity or investment before the deal is closed, certain steps like incorporation, structuring future investment, and creating a term sheet serve as protection for the interests of both parties. These assets and processes lend structure to the deal.
In this course, you will recognize the tradeoffs, risks, and implications of different legal investment structures and determine the right time and circumstances for switching those structures. Working with a sample startup, you will identify both appropriate and inappropriate forms of incorporation for the opportunity. You will determine the most appropriate legal structures for both non-equity and equity investment scenarios. You will then identify which sources of investment should be sought at the different phases of the business cycle. Finally, you will list the documentation required at each business cycle phase to close the deal.
You are required to have completed the following courses or have equivalent experience before taking this course:
Startup Viability and Funding Options
Pitching Your Business Opportunity
Key Course Takeaways
Match an investment opportunity with an appropriate corporate form
Match an investment opportunity with an appropriate investment legal structure
Determine the right time and circumstances for switching investment legal structures
Recognize the elements required in a term sheet
Identify the documents required to close your deal
Executive Director, Cornell Center for Regional Economic Advancement
Tom Schryver is the Executive Director of the Cornell Center for Regional Economic Advancement (CREA) and a Visiting Lecturer at the Johnson Graduate School of Management. CREA’s programs include Rev: Ithaca Startup Works, the Southern Tier Startup Alliance, and support of Cornell’s regional economic advancement efforts. Mr. Schryver leads the Upstate NY I-Corps Node and is the lead instructor for Cornell Engineering’s Commercialization Fellows program. He serves on the teaching team for eLab, Cornell’s student business accelerator, and teaches entrepreneurship and business strategy at Cornell.
Mr. Schryver is an experienced entrepreneur, having served as a startup founder and senior finance executive of high-growth companies. Previously, he was Director of Finance for the Triad Foundation, where his responsibilities included investing the Foundation’s $250m portfolio to top-quartile returns. Mr. Schryver’s board affiliations include the Cornell Agriculture and Food Technology Park and Tompkins County Area Development, and he serves as board vice-chair of the Business Incubator Association of New York State.