Your round is about money. The terms decide what it costs.
Founders negotiate the valuation and sign the rest. We read the rest: dilution, liquidation preference, veto rights and what happens if you leave.
Term sheet seed round
Round 2 · investor replied 9 Oct
Liquidation preference 2x, participating 1x, non-participating.
Anti-dilution Broad-based weighted average.
Founder vesting Four years, one-year cliff, acceleration on sale.
2x participating means that on a sale the investor gets twice their investment back and then still shares in the rest. That comes at your expense.Deviations from your standard positions
2 points open · 8 credits
View redlineFrom term sheet to closing.
And a data room that is ready before the investor asks for it.
The terms
We read the term sheet and the shareholders agreement for what they will mean for you in five years.
- Dilution calculated
- What is market standard, and what is not
Term sheet
Due diligence and closing
With a data room that is already in order, and a civil-law notary (notaris) from our network for the issue of the shares.
- Data room already filled
- Due diligence and closing: fixed price upfront
Closing
The points that go wrong in practice.
Valuation and dilution
What you keep after this round and the next.
Liquidation preference
Who gets what on a sale.
Veto rights
Which decisions you can no longer take alone.
Vesting and good/bad leaver
What happens to your shares if you leave.
Anti-dilution
What happens at a lower valuation in a next round.
Information rights
What you have to report to the investor, and how often.
A fixed price per item.
In credits, within your plan or separately. Full price list
Shareholders agreement or term sheet
Fixed price, however long it takes us.
Short check of a SAFE or convertible loan
Fixed price, however long it takes us.
Due diligence and closing
Fixed price, however long it takes us.
Short answers.
Do you also handle the notarial deed?
The issue of shares in a B.V. goes through the civil-law notary. We arrange that with a notary from our network.
When should I bring you in?
Before you sign the term sheet. After that, most things are already settled.