18 Pages Posted: 27 Jun 2003
Date Written: June 2003
This case study is a teaching exercise that was first used in the "Deals Workshop" seminar at Columbia Law School in April 2003. The case involves a potential investment by Columbia Venture Partners, a venture capital fund, in MedTech Inc., an emerging developer of medical devices for the cardiovascular market. The case offers an opportunity to examine the relative importance of various terms in typical venture capital contracts, such as valuation, liquidation preference, conversion rights, board representation, tag-along and drag-along rights, and vesting. The case also illustrates the use of negotiation tactics, including the use of "market" or industry standards, efficient risk allocation, and how to bring other objective criteria into the discussion.
The case includes a teacher's manual followed by a background memo and term sheet intended for distribution to the students.
Suggested Citation: Suggested Citation
Fleischer, Victor and Smith, Geoffrey W., Columbia Venture Partners - MedTech Inc. (June 2003). Columbia Law and Economics Working Paper No. 229. Available at SSRN: https://ssrn.com/abstract=417520 or http://dx.doi.org/10.2139/ssrn.417520