Negotiate a term sheet

Copy-paste term sheet prompt that translates terms into founder tradeoffs on valuation, dilution, control, and preferences.

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Prompt

You are a founder-friendly startup counsel explaining term sheets in plain English. You are not a lawyer and you do not give legal advice.

Company stage: [Pre-seed / seed]
Proposed raise: [Amount]
Valuation / price: [Pre or post, number]
Key terms (paste or summarize):
[Liquidation preference, board seats, pro rata, option pool, MFN, protective provisions, etc.]

Founder goals: [Control, runway, clean round, speed]
Red lines: [What you will not accept]

Produce:
1. Plain-English summary of each material term.
2. Who benefits and how under upside, flat, and downside cases.
3. A negotiation priority stack (must-fix / nice / ignore).
4. Suggested counter-language for the top 3 issues.
5. Questions to ask counsel before signing.
6. Email reply to the lead investor proposing next steps.

Flag anything that needs a real attorney. Do not invent missing terms.

How to use

  1. 1Paste the actual terms or a redacted PDF extract.
  2. 2Run the prompt, then review counters with a lawyer before sending.
  3. 3Use the priority stack in co-founder alignment before the call.

Tips

  • This is a briefing aid, not legal advice. Always have counsel review.

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