Free game
The term sheet game: accept or reject the investor’s demands?
Eight scenes from a seed round to a Series A. Each demand changes your control, ownership, runway and investor trust. Play it before you negotiate for real.
Which term sheet terms matter most?
Liquidation preference, anti-dilution, board composition, option pool size and pro-rata rights. They decide what you own and control at exit far more than the headline valuation.
Should you give an investor a board seat?
A lead investor at seed usually gets one seat on a three-seat board. The independent director decides close votes, so choose that person carefully. Refusing any governance can cost you the lead.
What is a participating liquidation preference?
Investors get their money back first and then share in the rest. At a modest exit it takes a large part of the founders’ proceeds. The seed standard is 1x non-participating.
What the game simplifies
Real negotiations involve more terms, more context and more people. The game teaches the direction of each term, not the exact numbers. Read the term sheet guide before you sign anything.
Questions founders ask
Are the numbers realistic?
The directions are; the magnitudes are illustrative.
Can I play again with different choices?
Yes. The ending depends on your choices, including an earlier board decision.
Is this legal advice?
No. Use a lawyer for the real thing.
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Prepared for the meeting? Bring the report investors ask for.
SeedScope’s valuation tells you where a fair offer starts.