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INSIGHTS/ The Experts (Cooley LLP and M Ventures): Navigating Term Sheets Through the Founder and Investor Lens

M VENTURES

M Ventures, the corporate VC arm of Merck KGaA, invests globally in biotech and life science technologies, balancing financial returns with strategic insights. Their investment team brings a nuanced view of deal structure, term sheet dynamics, and long-term company building.

COOLEY LLP

Cooley LLP is a globally recognized law firm known for its deep expertise in venture financings and high-growth life science companies. Their life sciences practice has guided hundreds of companies from first financing through IPO and M&A.

The Power of Perspective: Navigating Term Sheets Through the Founder and Investor Lens

"Founders often focus on valuation. Investors on protections. The art of the term sheet lies in reconciling both." - Harvard Business Review, "Negotiating Term Sheets: What Founders Need to Know"

As founder/CEOs, we know that a term sheet is far more than a summary of deal points. It is a strategic document that codifies how trust, power, risk, and future upside are distributed between founders and investors. When misread or rushed, a term sheet can quietly lock in structural disadvantages that only become visible years later - when it’s too late to renegotiate.

This session brings together legal and investor voices to help us decode what’s really being said in a term sheet. It offers an opportunity to engage directly with experienced counsel from Cooley LLP alongside investor perspectives from M Ventures, the corporate venture arm of Merck Group. Together, we’ll look at what matters most- through both the founder’s and the investor’s lens.

Why this is relevant for you

The language of term sheets is not neutral - it encodes the power dynamics of your venture’s next chapter. Participating vs. non-participating liquidation preferences, board control, reverse vesting, drag-along rights - each term reflects trade-offs with long-term implications.

While deal volume in biotech has contracted, investor scrutiny on terms has increased. Non-standard clauses are creeping in earlier, including cumulative preference dividends and layered liquidation preferences.

For founder/CEOs, being able to interpret and negotiate term sheets is not about legal minutiae - it’s about strategic control, future fundraising flexibility, and alignment with your long-term vision. This session helps sharpen your understanding not just of “what’s standard,” but of what’s strategically sound for your company.

Questions to consider ahead of this session

  • Which clauses in your past or current term sheets felt least understood at the time - and how might they shape your next round?

  • What’s your philosophy on governance: how much investor control is compatible with your vision for company leadership?

  • If you had to choose between economic upside and board control, which would you prioritize - and why?

We look forward to an open, nuanced discussion that balances founder priorities with investor imperatives - because the best deals are built on mutual clarity, not compromise.

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22 May

Roundtable: Fundraising

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11 June

INSIGHTS/ The Expert- Emma Tinsley (CEO Weatherden): Your Asset is not your Strategy: Build the Path to Value at Speed.