Topic · 5 threads

Term Sheets

A term sheet is the start of diligence, not the end of it. These threads decode the vocabulary (liquidation preferences, pro rata, anti-dilution), share tactics like sending your own term sheet, and warn about what can happen after you sign.

The Khosla Dinner: 'Fire Your Co-Founders and Take Their Stock'

Prince's follow-up horror story: after Khosla Ventures issued a Series C term sheet, Vinod Khosla allegedly leaned over at dinner, while Prince's co-founders were away from the table, and suggested Prince fire them and take their equity. Cloudflare didn't take the money.

Fundraising EthicsTerm SheetsSeries B+ Read the breakdown

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

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.

Term SheetsValuation & DilutionPre-Seed Read the breakdown

The Reverse Term Sheet: Compressing a Raise Into Three Weeks

Helgesen relays a tactic from a mentor who raised $500M+ and went public: never accept a VC's term sheet, send your own, with a hard deadline and only two blanks (price and amount). Week 1 set meetings, week 2 pitch and send the term sheet, week 3 review offers and sign, exploiting the fact that VCs behave completely differently on 'hot' deals.

NegotiationTerm SheetsAny StageArchived Read the breakdown

Open a SAFE on a Higher Cap: Post-Round Momentum Tactics

Iskold advises founders who recently closed sub-$2M rounds with momentum to open a SAFE at a higher cap and keep taking money, explaining the runway-as-leverage logic in a down market.

Term SheetsValuation & DilutionPre-Seed Read the breakdown

Sleeping Partner, Scowling Partner, Term Sheet Anyway

Wessel, now a First Round partner, recalls a 2015 Series A pitch where one famous partner slept and another scowled throughout, then the firm sent a term sheet two hours after IC and was shocked she declined.

Investor MeetingsTerm SheetsSeries A Read the breakdown