Term Sheet Analyzer

Anything above a 1x preference means investors take a multiple of their money off the top in an exit before founders see a dime. Push back hard.

A 1x preference is the clean, accepted standard for early-stage venture.

Participating preferred means the investor gets their money back AND their percentage of the remaining pie (the "double dip"). Extremely punitive to founders.

Standard structure. The investor must choose between getting their money back or converting to common shares.

Ensure founders (Common) maintain board majority at the Seed and Series A stages. Common: vs Investor: .