Welcome to our term sheet guide!
This is where we summarize and explain how we think about the terms that we apply to our investments. There will be updates and amendments to the contents here from time to time.
<aside> 👉 If you are just looking for the term sheet template; you can find it HERE
Before digging into this page, have you read our reasoning behind opening up our term sheet? If not, you can read it here.
Sharing our standard term sheet was an easy and obvious decision. However, in that process, we also realized that just sharing the term sheet without any explanations and context wasn’t really that helpful. So this quickly led us to the idea of this page, where we try to explain and give some context to each of the clauses that you find in our term sheet.
This page aims to help founders who are in contact with us (or are thinking about getting in contact with us) understand the reasoning behind our term sheet and what principles are important to us (and why). We do not see our term sheet template as a “first draft”, or “start of negotiations” to be ping-ponged and heavily negotiated.
We have broken out each of the individual clauses in our standard template term sheet (a link to the template term sheet is found below) and included:
We, of course, hope that you find this guide useful and accessible.
However, if you think that a certain explanation is hard to follow or that a certain issue needs more context, we would be super happy to hear your thoughts. The same goes if you have a different opinion about something and want to share.
Thoughts? Just shoot us an email at [email protected]. We may not necessarily agree, but we are always happy to hear your thoughts.
There are many term sheet guides and commentaries out there, some better than others, and many with diverging ideas on different clauses. Our goal here is not to comment on or give pros and cons on all of the myriad of variations of possible clauses that can be included in a term sheet (though a deep dive into at least some of the clauses may be a topic for us to delve into at another time).