You are a new founder of an early-stage company. You are working hard to build your startup and managed to get a few investors interested but now you have been sent a term sheet that you can’t decipher. Don’t worry, I have been through this myself.
To help new founders, I've created a simple tool to help you understand how different investment terms like preference and participation affect your company's future.
So how does this work? This Term Sheet Simulator lets you scenario plan:
- How much money do VCs put in
- Your company's valuation
- Investor preferences
- Participation rights
- Multiple funding rounds
Why should you use this simulator?
- See how different exit values affect your payout from an exit
- Understand what investors might earn depending on their participation/preference clauses
- Compare different investment offers from VCs
- Make informed decisions when talking to VCs
- Avoid common mistakes in deal-making (as a founder).
This simulator was made using AI technology from Anthropic's Claude 3.5 Sonnet.
Important notes:
This is a test version. I welcome your feedback to make it better. It works best on Google Chrome. You may need to allow for permission to run JavaScript for it to work properly.
Try it for free>> https://claude.site/artifacts/d0eb729d-23bc-490d-afc1-06b9cb6ca282
Please share this with other founders you know.
Understanding these terms can make a big difference when raising money for your startup.
