19. The terms of a term sheet

Andreas just met with Cherry VC and talked about their term sheet, which is available on their website, and Julia has been digging into the nitty gritty of Pale Blue Dot’s open term sheet guide.

They end up explaining the most important terms in a term sheet, what you can expect, and what the market standard is. They also fight about whether liquidation preferences should be provided to investors and if founder vesting really should reset when a VC invests.

Alumni company of week: Bubblare.se, founded by Oskar Kalmaru

Resources mentioned:

Cherry’s term sheet: https://medium.com/cherryventu....res/term-sheet-unloc Blue Dot’s term sheet: https://pbdvc.notion.site/The-Pale-blue-dot-term-sheet-guide-e5e9d27983b54a6a8cde23e7df463befJulia’s column on liquidation preference shares: https://www.breakit.se/artikel/36657/dirty-term-sheets-forstor-ekosystemet-for-startupsWellstreet’s blog post on dirty terms: https://wellstreet.se/story/na....vigating-the-risks-o by Julia Delin & Andreas Johansson

Edited by Victor Ganguly

Responsible publisher: Lars Strannegård