What founders should know before negotiating a term sheet
A term sheet is not the final deal, but it sets the tone for valuation, dilution, control, liquidation preference, and follow-on rights. The strongest negotiations start with clear priorities and a short list of acceptable trade-offs.
Before you sign, pressure-test the investor’s assumptions, make sure the economics match the growth plan, and keep enough room to run the business after the round closes.
A simple checklist
- Confirm the implied valuation and dilution are within your target range.
- Review liquidation preference, board rights, and protective provisions.
- Check whether the closing timeline matches your fundraising plan.
Next step: turn investor-readiness into investor conversations.
Review the advisory path first, then route directly to your fundraising contact and service page.
