One of the most pivotal moments in a founder’s career is when an investor presents them with a term sheet. The nuances of deal terms can shape the future of a startup for the next decade or even longer – that’s why it’s important to get the term sheet right from the get-go.

Melissa C. Guzy, co-founder and managing partner of Arbor Ventures, decodes the complicated legal structure of a term sheet, the common pitfalls founders must avoid, and how they can negotiate for cleaner and simpler terms to get entrepreneurs and their investors on the same page.

Experience the full workshop here. 

Timecodes:

00:05 – Have your documents in order

00:41 – Key term sheet clauses

02:48 – Economic clauses

04:36 – Control terms

05:52 – Major investor clauses

06:33 – Aggressive clauses