The Term Sheet – that enigmatic, not quite binding legal document that every entrepreneur both craves and fears. There is no shortage of resources to help one understand a term sheet but there are a few worth highlighting. I’d be remiss to not mention Brad Feld’s term sheet series over on his blog or his book Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist. Brad is one of the early pioneers of demystifying term sheets and deserves being mentioned first.
In addition, Founders Fund has a Transparent Termsheet section on their website that allows you to plug key terms into a calculator and play around with various exit scenarios. They also have their own plain english guide to a term sheet as well.
Finally, embedded below is probably the most plain english term sheet I’ve come across yet. Provided by UK based Passion Capital.
Check ’em all out!