Term Sheet Example File

Understanding all the deal terms is critical; some can have draconian impacts on the company.

This tool graphically illustrates the saying “You specify the price, I’ll specify the terms.”  By changing some of the “other terms” in the tool, it will become obvious that valuation is only one of many factors that determine the true cost of an investment from a venture capital firm.  Entrepreneurs may negotiate one or two term sheets in their career, while VCs do it for a living!