Term sheets are complicated. Endeavor Insight built the tool below to help entrepreneurs receiving their first VC investments understand how changes to certain parts of a contract can radically alter how entrepreneurs and investors will share the money made on the sale of a company.

However, you don’t have to take our word on why this is important. As the chief counsel of one of our early entrepreneurs has said, “Not understanding this stuff—liquidation preferences, participation, etc.—cost our team about $100M when we sold the company!”

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  • Is there a drag-along requirement?

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Please enter investment information to your left and click GO.
Pre-money Valuation  
Post-money Valuation  
Total Shares  

 

  Series A
Investment
Amount
Common
Shares
Preferred
Shares
Ownership
(Fully Diluted)
Founders and other current shareholders        
Employees (option pool)        
         
Series A Investor        
Disclaimer: This calculator is for educational purposes only. In any term sheet negotiation, it is important to retain legal counsel, and this tool should in no way be used to substitute for such counsel. Other components of a contract that are not represented in the calculator above, can and do effect the payouts in the event of an exit.

 

Share your term sheet!

Endeavor is continuing to build out a database of term sheets from entrepreneurs and investors around the world. If you would like to contribute to this effort please use the form to the right to upload a term sheet you have received to our database.

Instructions: Please remove or delete the following information from the term sheet you’ve received—name of your company, name of the investor, value of the potential investment and amount of shares/equity purchased. (The “Find & Replace” function in Microsoft Word, can be super helpful for this.)

Next, please fill out the adjacent form and upload your document. Thank you!

  1. What country is your company based in?
  2. What country is your potential investor based in?
  3. Is this term sheet for a minority investment?
  4. What round of financing would this be for your company?
  5. Upload your file. (.doc or .pdf)