{"id":10224,"date":"2022-02-16T17:35:07","date_gmt":"2022-02-16T17:35:07","guid":{"rendered":"https:\/\/www.rimonlaw.com\/?p=10224"},"modified":"2022-02-16T17:35:07","modified_gmt":"2022-02-16T17:35:07","slug":"as-venture-deal-terms-narrow-ttos-should-focus-on-investor-quality","status":"publish","type":"post","link":"https:\/\/www.rimonlaw.com\/as-venture-deal-terms-narrow-ttos-should-focus-on-investor-quality\/","title":{"rendered":"As Venture Deal Terms Narrow, TTOs Should Focus on Investor Quality"},"content":{"rendered":"<p>Universities \u2014 via their TTOs \u2014 often receive equity as partial consideration for technologies they license to start-ups. Most of these ventures will raise multiple rounds of financing. As relatively small, junior shareholders, TTOs typically are deal term \u201ctakers\u201d with limited ability to impact the deal terms of follow-on rounds. A recent survey of venture deal terms strongly suggests that in most cases this is not a liability, as the remarkable commonality of deal terms reflects limited negotiability in any case.<\/p>\n<p>In connection with the release of an updated version of its Series A Model Term Sheet last year, the National Venture Capital Association (NVCA) included survey results provided by Aumni based on data from \u201c100,000 venture transactions, representing over 40,000 investors with a combined network of over $1 trillion in assets under management.\u201d This summer, Aumni released an updated version of the data companion that includes 2020 data and more data fields. (For details on the updated model term sheet,\u00a0<a href=\"https:\/\/www.aumni.fund\/resources\/enhanced-model-term-sheet\" target=\"_blank\" rel=\"noopener\"><strong>click here<\/strong><\/a>.)<\/p>\n<p>Roughly 40% of the data fields included in the Aumni survey relate to the frequency with which certain deal terms are found in financing transactions. For example: \u201cWhat is the frequency of 1x preferences?\u201d<\/p>\n<p>The results are reported by funding round. While most experienced players in the space likely already know the market norms for each of these deal terms, what is truly striking is the degree of conformity. Identical deal terms are present in 80% to 90% of financings \u2014 usually with the most company-friendly option.<\/p>\n<p><a href=\"https:\/\/techtransfercentral.com\/reprints\/ttt\/222-as-venture-deal-terms-narrow-ttos-should-focus-on-investor-quality\/\"><strong>Read the full article here.<\/strong><\/a><\/p>\n<div class=\"hr-thin\"><\/div>\n<p><a href=\"https:\/\/www.rimonlaw.com\/team\/dror-futter-2\/\">Dror Futter<\/a> focuses his practice on startup companies and their investors, and has worked with a wide range of technology companies. His fifteen years\u2019 experience as in-house counsel includes positions with Vidyo, Inc., a venture-backed videoconferencing company, and New Venture Partners, a venture fund focused on corporate spinouts. Prior to that, Mr. Futter was Counsel to the CIO of Lucent Technologies, as well as supporting parts of its sourcing organization. <a href=\"https:\/\/www.rimonlaw.com\/team\/dror-futter-2\/\">Read more here.\u00a0<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Universities \u2014 via their TTOs \u2014 often receive equity as partial consideration for technologies they license to start-ups. Most of these ventures will raise multiple rounds of financing. As relatively small, junior shareholders, TTOs typically are deal term \u201ctakers\u201d with limited ability to impact the deal terms of follow-on rounds. A recent survey of venture&hellip;<\/p>\n","protected":false},"author":53,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[8],"tags":[],"ppma_author":[2111],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>As Venture Deal Terms Narrow, TTOs Should Focus on Investor Quality - Rimon Law<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.rimonlaw.com\/as-venture-deal-terms-narrow-ttos-should-focus-on-investor-quality\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"As Venture Deal Terms Narrow, TTOs Should Focus on Investor Quality - Rimon Law\" \/>\n<meta property=\"og:description\" content=\"Universities \u2014 via their TTOs \u2014 often receive equity as partial consideration for technologies they license to start-ups. Most of these ventures will raise multiple rounds of financing. As relatively small, junior shareholders, TTOs typically are deal term \u201ctakers\u201d with limited ability to impact the deal terms of follow-on rounds. A recent survey of venture&hellip;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.rimonlaw.com\/as-venture-deal-terms-narrow-ttos-should-focus-on-investor-quality\/\" \/>\n<meta property=\"og:site_name\" content=\"Rimon Law\" \/>\n<meta property=\"article:published_time\" content=\"2022-02-16T17:35:07+00:00\" \/>\n<meta name=\"author\" content=\"Fiona Carlon\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Sanjil Kumar\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.rimonlaw.com\/as-venture-deal-terms-narrow-ttos-should-focus-on-investor-quality\/\",\"url\":\"https:\/\/www.rimonlaw.com\/as-venture-deal-terms-narrow-ttos-should-focus-on-investor-quality\/\",\"name\":\"As Venture Deal Terms Narrow, TTOs Should Focus on Investor Quality - Rimon Law\",\"isPartOf\":{\"@id\":\"https:\/\/www.rimonlaw.com\/#website\"},\"datePublished\":\"2022-02-16T17:35:07+00:00\",\"dateModified\":\"2022-02-16T17:35:07+00:00\",\"author\":{\"@id\":\"https:\/\/www.rimonlaw.com\/#\/schema\/person\/690cfc39fe60f1460fd2b6e330389acd\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.rimonlaw.com\/as-venture-deal-terms-narrow-ttos-should-focus-on-investor-quality\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.rimonlaw.com\/as-venture-deal-terms-narrow-ttos-should-focus-on-investor-quality\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.rimonlaw.com\/as-venture-deal-terms-narrow-ttos-should-focus-on-investor-quality\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.rimonlaw.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"As Venture Deal Terms Narrow, TTOs Should Focus on Investor Quality\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.rimonlaw.com\/#website\",\"url\":\"https:\/\/www.rimonlaw.com\/\",\"name\":\"Rimon Law\",\"description\":\"Law Firm Evolved\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.rimonlaw.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.rimonlaw.com\/#\/schema\/person\/690cfc39fe60f1460fd2b6e330389acd\",\"name\":\"Sanjil Kumar\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.rimonlaw.com\/#\/schema\/person\/image\/3bee925a53535bb296bd6f26c6c81e40\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/4f29be1c66f4ac9f38581ae3f333bd0b?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/4f29be1c66f4ac9f38581ae3f333bd0b?s=96&d=mm&r=g\",\"caption\":\"Sanjil Kumar\"},\"url\":\"https:\/\/www.rimonlaw.com\/author\/sanjil-kumarrimonlaw-com\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"As Venture Deal Terms Narrow, TTOs Should Focus on Investor Quality - Rimon Law","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.rimonlaw.com\/as-venture-deal-terms-narrow-ttos-should-focus-on-investor-quality\/","og_locale":"en_US","og_type":"article","og_title":"As Venture Deal Terms Narrow, TTOs Should Focus on Investor Quality - Rimon Law","og_description":"Universities \u2014 via their TTOs \u2014 often receive equity as partial consideration for technologies they license to start-ups. Most of these ventures will raise multiple rounds of financing. As relatively small, junior shareholders, TTOs typically are deal term \u201ctakers\u201d with limited ability to impact the deal terms of follow-on rounds. A recent survey of venture&hellip;","og_url":"https:\/\/www.rimonlaw.com\/as-venture-deal-terms-narrow-ttos-should-focus-on-investor-quality\/","og_site_name":"Rimon Law","article_published_time":"2022-02-16T17:35:07+00:00","author":"Fiona Carlon","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Sanjil Kumar","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.rimonlaw.com\/as-venture-deal-terms-narrow-ttos-should-focus-on-investor-quality\/","url":"https:\/\/www.rimonlaw.com\/as-venture-deal-terms-narrow-ttos-should-focus-on-investor-quality\/","name":"As Venture Deal Terms Narrow, TTOs Should Focus on Investor Quality - Rimon Law","isPartOf":{"@id":"https:\/\/www.rimonlaw.com\/#website"},"datePublished":"2022-02-16T17:35:07+00:00","dateModified":"2022-02-16T17:35:07+00:00","author":{"@id":"https:\/\/www.rimonlaw.com\/#\/schema\/person\/690cfc39fe60f1460fd2b6e330389acd"},"breadcrumb":{"@id":"https:\/\/www.rimonlaw.com\/as-venture-deal-terms-narrow-ttos-should-focus-on-investor-quality\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.rimonlaw.com\/as-venture-deal-terms-narrow-ttos-should-focus-on-investor-quality\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.rimonlaw.com\/as-venture-deal-terms-narrow-ttos-should-focus-on-investor-quality\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.rimonlaw.com\/"},{"@type":"ListItem","position":2,"name":"As Venture Deal Terms Narrow, TTOs Should Focus on Investor Quality"}]},{"@type":"WebSite","@id":"https:\/\/www.rimonlaw.com\/#website","url":"https:\/\/www.rimonlaw.com\/","name":"Rimon Law","description":"Law Firm Evolved","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.rimonlaw.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.rimonlaw.com\/#\/schema\/person\/690cfc39fe60f1460fd2b6e330389acd","name":"Sanjil Kumar","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.rimonlaw.com\/#\/schema\/person\/image\/3bee925a53535bb296bd6f26c6c81e40","url":"https:\/\/secure.gravatar.com\/avatar\/4f29be1c66f4ac9f38581ae3f333bd0b?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/4f29be1c66f4ac9f38581ae3f333bd0b?s=96&d=mm&r=g","caption":"Sanjil Kumar"},"url":"https:\/\/www.rimonlaw.com\/author\/sanjil-kumarrimonlaw-com\/"}]}},"authors":[{"term_id":2111,"user_id":37,"is_guest":0,"slug":"fiona-carlonrimonlaw-com","display_name":"Fiona Carlon","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/bc8babf460ef322a38e140ab92737b7c?s=96&d=mm&r=g","user_url":"","last_name":"Carlon","first_name":"Fiona","description":""}],"_links":{"self":[{"href":"https:\/\/www.rimonlaw.com\/wp-json\/wp\/v2\/posts\/10224"}],"collection":[{"href":"https:\/\/www.rimonlaw.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.rimonlaw.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.rimonlaw.com\/wp-json\/wp\/v2\/users\/53"}],"replies":[{"embeddable":true,"href":"https:\/\/www.rimonlaw.com\/wp-json\/wp\/v2\/comments?post=10224"}],"version-history":[{"count":0,"href":"https:\/\/www.rimonlaw.com\/wp-json\/wp\/v2\/posts\/10224\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.rimonlaw.com\/wp-json\/wp\/v2\/media?parent=10224"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.rimonlaw.com\/wp-json\/wp\/v2\/categories?post=10224"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.rimonlaw.com\/wp-json\/wp\/v2\/tags?post=10224"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.rimonlaw.com\/wp-json\/wp\/v2\/ppma_author?post=10224"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}