The jargon VCs throw around on Twitter and at conferences.
Twitter threads, conference panels, board memos — VCs throw these terms around constantly. Reverse-engineer the jargon so you can read the subtext.
The clause in a term sheet guaranteeing investors get their money back first — sometimes a multiple of it — before founders or employees see a dollar from an acquisition.
Read the full termThe contractual right (but not the obligation) for an investor to participate in future funding rounds at the new round's price — at enough size to maintain their current ownership percentage.
Read the full termThe short, mostly-non-binding document outlining the key terms of an investment — valuation, amount, board composition, liquidation preference, vesting — negotiated and signed BEFORE the lawyers start drafting the 100-page deal docs.
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