Separate term sheet terms into economics, control, and process so tradeoffs become visible.
Valuation is the loudest term, not always the most important one. Economics tells you how the pie moves These terms affect ownership, proceeds, and downside behavior. Liquidation preference, participation, anti-dilution, and option pool treatment can change outcomes dramatically even when the pre-money feels attractive. Control tells you who can stop what Board composition and protective provisions decide how much freedom the company keeps after the money lands. This matters most when the company hits stress and ordinary decisions suddenly require extra permissions. Process decides who keeps leverage between signature and close Exclusivity, diligence scope, and document timing determine whether the…
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