Excerpt From Summary of Brad Feld & Jason Mendelson's Venture Deals 4th Edition
#1
The first famous venture capital investment was Digital Equipment Corporation, which was funded in 1957 by American Research and Development Corporation, one of the first venture capital firms. DEC went public in 1968, and this investment was worth over $355 million, or a return of over 5,000 times the invested capital.
#2
While it would be desirable to do venture capital deals with a simple agreement on price, a handshake, and a short legal agreement, this rarely happens. And while there have been plenty of attempts to standardize the term sheet over the years, the proliferation of lawyers, venture capitalists, and entrepreneurs, along with a steadily increasing number of investments, has prevented this from happening.
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