EDocs Study Questions Essay

This aspect concerns the dialogue of a venture capital in adornment between Charles River Ventures (CRV) and the founders of eDocs. eDocs (Kevin Laracey) and CRV (Jonathan Guerster) must go down what statuss they would like to negotiate. Negotiation roles are ruinn in an attendant spreadsheet. Please review the study questions (page 2) and the analyze questions (pages 3 and 4) I go away use these questions as a basis for class converseion. The point of the poll questions is to force people to think specific eachy about trading fall out to deal endpoints for price, and to see how these tradeoffs vary across teams. Statistics from the poll results pass on be discussed in class.In your case memorandum, please include a term sheet signed by one member of severally team. Please make sure that the term sheets from both sides of the transaction match. It is non necessary to reproduce the entire term sheet for the case instead, you dissolve sign an amended term sheet that includes only the provisions that slang changed from the accredited please also include either amendments to the terms discussed in Guersters permitter to Laracey (page 22 of the case). If the teams could not reach an agreement, please posit this explicitly in your case memo. The memos should include all the answers to the poll questions for your team (pages 3 and 4) and some logical support for these answers.These poll questions are efficaciously the starred (*) questions for this memo. You are also free to answer/discuss some(prenominal) of the study questions (see page 2) or any other issues that were important in your talks. Grades on these memos will depend on the logical co here(predicate)nce of your negotiating outline and answers to the poll questions (as described in the memo) and may depend on the sexual congress success of your negotiation (judged vs. other teams). It is possible to negotiate against intransigent counterparties, come to no agreement, and yet exp lain this well and write an excellent case memo. Please restrict your memos to be no more than five pages (not including the term sheet). A well-written memo of three pages beats a rambling five-page memo any day.thither are two good deals of poll questions one set for the eDocs team and one set for the CRV team. I apologize for stating the obvious, but here it goes eDocs teams should answer only the eDocs poll and CRV teams should answeronly the CRV poll.eDocsA startup e-commerce partnership is looking for its first-round of venture capital. A prominent VC is interested, and the parties must muckle over terms and price.1) Is eDocs a good fit for CRV? If you were CRV, is this the gracious of company you necessitate to invest in?2) Is CRV a good fit for eDocs? If you were eDocs, is this the kind of VC you want as an early-stage investor?3) What are the most contentious terms for negotiation?4) (*) How did your team decide on the relative value of these terms? 5) With the disco ver of this negotiation behind you, how would you go through handled it differently?Poll Questions eDocs blood there is not just one correct answer for any of these questions, so dont go crazy trying to jut it out. Also, for Questions 2 and 3, we do not expect any specific numerical analysis. There are, however, good reasons why you might care more or slight about the issues raised in all of the questions please discuss these reasons in your memo and use them to guide your answers. One thing that is dead on target all of your answers to these questions should have X greater than or equal to $1. If you want to give an answer less than $1, then you are misunderstanding the question.1) You have do a counter snap to CRV that eliminates the participation described in the liquidation section of the term sheet. That is, you have offered that CRV pay $1 per address for regular convertible pet stock with no participation feature. They counter with an offer of $X per overlap piece keeping the participation option. What is the last-place value of X for which you would be uncoerced to let them keep participation? 2) You have make a counteroffer to CRV that accelerates the vesting as described in the Founders Stock, Options & Vesting section of the term sheet. That is, you have offered the alike(p) terms as the passkey spreadsheet, except that founders shares vest immediately. CRV counters with an offer of $X pershare musical composition keeping the same vesting schedule. What is the lowest value of X for which you would be willing to let them keep the archetype schedule?3) You have make a counteroffer to CRV that adds Kris Canekeratne to the Board of Directors. CRV, relate that the board would be as well large, counters with an offer of $X per share charm keeping the same board composition as in the original term sheet. What is the lowest value of X for which you would be willing to let them keep the original board composition?4) Guersters letter to Lara cey (page 22 of case) includes a look into under which CRV will receive extra warrants if they pay the entire round. You have make a counteroffer that removes this provision. CRV counters with an offer of $X per share small-arm keeping the extra warrant condition. What is the lowest value of X for which you would be willing to let them keep this condition?Poll Questions CRVNOTE There is not just one correct answer for any of these questions, so dont go crazy trying to figure it out. Also, for Questions 2 and 3, we do not expect any specific quantitative analysis. There are, however, good reasons why you might care more or less about the issues raised in all of the questions please discuss these reasons in your memo and use them to guide your answers. One thing that is true all of your answers to these questions should have X greater than or equal to $1. If you want to give an answer less than $1, then you are misunderstanding the question.1) eDocs has made a counteroffer to you t hat eliminated the participation described in the liquidation section of the term sheet. That is, they have offered that you pay $1 per share for regular convertible preferred stock with no participation feature. You are preparing to counter with an offer of $X per share while keeping the participation option. What is the highest value of X you would be willing to offer in order keep the participation?2) eDocs has made a counteroffer to you that accelerates the vesting as described in the Founders Stock, Options & Vesting section of the termsheet. That is, they have offered the same terms as the original spreadsheet, except that founders shares vest immediately. You are preparing to counter with an offer of $X per share while keeping the same vesting schedule. What is the highest value of X you would be willing to offer in order to keep the original vesting schedule?3) eDocs has made a counteroffer to CRV that adds Kris Canekeratne to the Board of Directors. You are concerned that the board would be too large and are preparing to counter with an offer of $X per share while keeping the same board composition as in the original term sheet. What is the highest value of X you would be willing to offer in order to keep the board composition as described in the term sheet? 4) Guersters letter to Laracey (page 22 of case) includes a condition under which CRV will receive extra warrants if they finance the entire round. eDocs has made a counteroffer that removes this provision. You are preparing to counter with an offer of $X per share while keeping the extra warrant condition. What is the highest value of X you would be willing to offer in order to keep this condition?