Term Sheets! Are! Confusing! Common Terms Decoded for New Founders

Paige Finn Doherty @paigefinnn · Behind Genius Ventures Investor Posted April 28, 2020
Term SheetsValuation & DilutionPre-SeedSeedHow-toTeardown
“term sheets! are! confusing! ...here are some common terms and what they really mean”
Paige Finn Doherty (@paigefinnn), April 28, 2020. Short excerpt; the full thread belongs to its author.

What this teaches

A plain-English glossary thread decoding term sheet vocabulary (liquidation preferences, pro rata, anti-dilution and more) for first-time founders and new VCs, written before Doherty founded Behind Genius Ventures.

Why it matters

One of the most-shared accessible explainers of deal terms on Twitter; nearly 2,000 likes and a staple of fundraising thread roundups.

Key lessons

  • Understand each term's cash-out implications, not just its definition
  • Dilution protection mechanics decide real ownership
  • Never sign terms you can't explain

This is an editorial summary. The full thread, and the credit, belongs to Paige Finn Doherty.

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Behind Genius Ventures on VCMatch Paige Finn Doherty invests through Behind Genius Ventures. See the firm's stage, check size, and thesis on VCMatch. View investor →

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