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The Term Sheet Negotiation Handbook

VC terms decoded for AI founders — economics, control, AI-specific clauses, and a negotiation-priorities map for what to hold and what to give.

A term sheet is a short document that quietly decides who controls your company, who gets paid first, and what happens to the models and data you spent years building. This handbook decodes the terms that matter, flags the AI-specific clauses most founders miss, and tells you plainly what to hold and what to let go.

What's inside

  1. 01Why this document deserves your full attention
  2. 02The shape of a financing, in one picture
  3. 03Valuation, dilution, and the number that isn't the real number
  4. 04The option pool shuffle — the most common quiet tax on founders
  5. 05Liquidation preference — who gets paid first, and how much
  6. 06Anti-dilution — protection against the down round
  7. 07Pro-rata, board, and the rest of the standard machinery
  8. 08Control terms — board composition and protective provisions
  9. 09SAFEs versus priced rounds — what actually differs
  10. 10AI-specific clauses, part one — your models, weights, and IP
  11. 11AI-specific clauses, part two — data rights, model dependency, and compute
  12. 12The terms glossary — decoded at a glance
  13. 13Negotiation principles — leverage, and where it actually comes from
  14. 14What to hold and what to concede — a priorities table
  15. 15Process, red flags, and the long view

Includes 6 cited references and worked examples, written in plain language you can act on.

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For founders raising capital

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Apply to the AI Capital Acceleration Program — an eight-week expedition from prototype to term sheet, with warm introductions to our network of technology VCs.