Guidance
NVCA: Protective Provisions
This article is one in a series of articles explaining various terms commonly seen in term sheets issued by venture capital funds in connection with equity financings. What are protective provisions? Protective provisions are a list of actions or events that a company cannot take or consummate without first obtaining a specified approval by investors (either at the stockholder level or board level). As discussed in additional detail below, these minority protections are generally targeted... Read more »