Term Sheet Template
A founder-friendly venture capital term sheet template, with explanations of the terms that matter most.
Key Sections Covered
- +Valuation, round size, and security type
- +Liquidation preference and participation
- +Anti-dilution, pro-rata rights, and option pool
- +Board composition, voting rights, and information rights
How to Use This Template
This template is designed to help you understand and negotiate a venture term sheet, not to replace a lawyer. Use it to get familiar with the structure and language before you engage counsel.
Disclaimer: This is not legal advice. Always work with a qualified startup attorney on real term sheets.
Critical Term Sheet Concepts
1x Non-Participating Preference
A common structure where investors get their money back first (1x), then share in the remaining proceeds with common shareholders.
Option Pool Shuffle
Whether the pre-money valuation includes or excludes a new option pool can meaningfully affect founder ownership.
Pro-Rata Rights
Rights that allow investors to maintain their ownership percentage in future rounds by investing more capital.
Get the Term Sheet Template
Get a Word and Google Docs version of the term sheet template, plus a checklist of questions to ask your attorney.
Free resource · Based on standard VC docs · Not a substitute for legal counsel