Term sheet questions
Explains each clause in plain English, what is standard, and the questions to ask your lawyer.
Use it when
You received a term sheet. Not a substitute for legal advice.
What you fill in
- terms The term sheet text or its key terms
- stage Round stage and what you care about (control, dilution, speed)
The prompt
Explain this term sheet for a stage round: terms For each clause: what it means in plain English, whether it is standard for this stage, founder-friendly or investor-friendly, and its practical effect in a good outcome and a bad one (show the math for liquidation preference and dilution). Then list the 5 most important questions for my lawyer, and the terms worth negotiating with how much leverage I likely have. Note that this is not legal advice. Before you answer, check your draft against every instruction above and fix anything that misses.
Why it works
- Shows outcomes in good and bad scenarios, where terms actually bite.
- Benchmarks against what is standard.
- Ends with lawyer questions rather than playing lawyer.