Term sheets are full of jargon designed by lawyers for lawyers. In this walkthrough I break down the most important clauses you'll encounter at the seed stage — in plain English.
What we cover
- Pre-money vs. post-money valuation — and why it matters more than most founders let on
- Pro-rata rights — what they are, why you want them, and when founders push back
- Liquidation preferences — 1x non-participating is standard; anything else, read carefully
- Information rights — what you're entitled to know after you've invested
- Anti-dilution provisions — broad-based weighted average vs. full ratchet
The video is about 18 minutes. Timestamps are in the description if you want to jump to a specific section.
Have a term sheet you'd like me to walk through? Send it to hello@zendue.app (anonymised is fine).