Fundraising
15 min readUnderstanding Term Sheets: Basic Clauses Explained
By Legal Expert•2/5/2026
# Term Sheet Basics\n\nWhen a VC gives you a term sheet, look out for these clauses:\n\n* **Valuation**: Pre-money vs Post-money.\n* **Liquidation Preference**: Who gets paid first?\n* **Anti-dilution**: Protection against down rounds.