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Understand Term Sheet Basics
Fundraising
Level 1 - Exploration

Understand Term Sheet Basics

Taught by Marcus Chen-Ramirez

About This Challenge

Decode term sheets and understand the key terms that define investment deals. This exploration covers valuation, dilution, control provisions, and the economic and control terms that matter most. You will learn to read and evaluate term sheets with confidence.

What You'll Learn

  • Identify the key components of a term sheet and their purposes
  • Distinguish between economic terms and control terms in investment deals
  • Calculate pre-money and post-money valuations and understand dilution mechanics
  • Recognize important protective provisions and their implications for founders
  • Evaluate negotiation priorities and identify which terms matter most

Challenge Content

16 lessons
Economic Terms
Introduction to Term Sheets
10 Min
Valuation and Price Per Share
8 Min
Liquidation Preferences and Anti-Dilution
10 Min
Economic Terms Knowledge Check
10 Min
Control Terms
Who Controls the Company?
10 Min
Board Composition and Voting Rights
10 Min
Protective Provisions and Information Rights
10 Min
Control Terms Knowledge Check
10 Min
Valuation Deep Dive
How Startups Are Valued
10 Min
Valuation Methods for Startups
10 Min
Dilution Mechanics and Cap Table Impact
10 Min
Valuation and Dilution Calculation Exercise
25 Min
Negotiation Strategy
Negotiation Principles for Term Sheets
10 Min
Which Terms Matter Most
10 Min
Term Sheet Negotiation Assessment
10 Min
Analyze a Sample Term Sheet
35 Min

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Ratings & Reviews

Challenge Info

Level
Level 1 - Exploration
Subject
Fundraising
Progress
0%
Rewards
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Requirements

  • Basic understanding of how startups raise funding is helpful but not required
  • No legal or finance background needed
  • Curiosity about how investment deals are structured
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