Q:
What is Apple Tree Investments involvement with the negotiation process?

A:
Following due diligence and under the guidance of Apple Tree Investments, the successful venture will then enter into the negotiation process, where the structure and terms of financing will be determined. The entrepreneur must carefully prepare for this next step by becoming familiar with the various structures of venture capital financing and preparing a bargaining position. This process will be accomplished with the assistance of an Apple Tree Investments representative and an attorney who has extensive venture capital experience. Apple Tree Investments and Attorneys will provide guidance on the issues worth fighting for. Issues to consider are: vesting, salary, stock restrictions, commitment to the venture, debt conversion, dilution protection, downstream liquidity and directors. The negotiations will involve most or all of these issues in addition to price per share. However, price-per-share concerns should not be the overriding interest; the end result of this process must be a win/win situation in order for the relationship to progress successfully. The last step is to document and close the transaction, resulting in a term sheet, investment agreement(s) and, finally, the closing.