Founder's Pocket Guide

<p>This easy to follow guide helps <strong>startup founders</strong> understand the key moving parts of an <strong>investment term sheet</strong> and review typical <strong>preferred share rights preferences and protections.</strong> Along the way we also provide easy-to-follow examples for the most common calculations related to preferred share equity deals.</p><p>Expanding on these fundraising concepts this Founder’s Pocket Guide helps startup founders learn:</p><ul> <li>What a term sheet is and how to summarize the most important deal terms for your fundraising and startup building goals.</li> <li>How preferred stock shares differ from common shares with review of how each key preferred share right and preference is tied to the investor’s shares.</li> <li>Key terms and definitions associated with equity fundraising such as pre-money valuation founder dilution and down round.</li> <li>How to decipher legalese associated with a term sheet deal such as pro rata fully diluted and pari passu.</li> <li>The full list of the most common term sheet clauses their plain English meaning and their importance to an early-stage investment deal.</li> <li>Simple math for the key term sheet financial aspects including calculating fully diluted shares outstanding investor equity ownership percentages and the impact of option pools on founder dilution.</li> <li>Example exit scenarios showing how term sheet deal points impact how exit proceeds get divided among investors and founders.</li></ul>