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!”
|Founders and other current shareholders|
|Employees (option pool)|
|Series A Investor|