Term Sheets In Nigeria

A Nigerian tech start-up was preparing to close a Series A funding round with a venture capital investor, who had provided successive Term Sheets for review. Unfortunately, the founders only engaged legal counsel after signing the Term Sheet and after receiving drafts of the definitive documentation.

Upon reviewing the Term Sheet, our legal team identified several unfavourable provisions that could jeopardize the company's valuation, governance, and operational growth. For one, the founders had significantly undervalued the company having not taken into consideration a number of factors, including strategic partnerships that enhanced the company's market position, and ongoing development of innovative products with strong revenue potential.