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The Term Sheet Cheat Sheet
Every term that matters on a pre-seed or seed term sheet: what it actually means, what's normal to accept, and what's a red flag. Built from the real term sheets I signed raising $4M.
WHAT'S INSIDE
- The money: security, valuation, liquidation preference, dividends, anti-dilution
- Control: board seats, protective provisions, drag-along, founder vesting
- Rights and housekeeping: pro rata, ROFR, option pool, fees, no-shop, expiry
- If it's a SAFE instead, and what to fix before you sign anything
FOUR QUICK QUESTIONS, THEN IT'S YOURS
Where are you with your raise?
Under a minute. It tells me who's reading and what to write next.