True or false:
1) The term sheet between a venture capital company and the founders of a venture will specify the share of the company being sold and the price it is being sold for.
2) An example of a restrictive covenant in a term sheet would be one that prevents founder from leaving the business to start another business for a set period of time and/or while the founder owns a certain percentage of the company.
3) Term sheets are used to work out the natural financial and control tensions that exist between founders and venture capitalists. The specifics of a term sheet will vary from deal to deal.
4) The exclusivity clause in a term sheet will constrain the founders from shopping the deal around while a Venture Capital frim is decoding weather to invest or not.