A term sheet is written to be skimmed. TermLab walks you through every clause, rates the founder-friendly ones against the traps, and simulates what each actually does to your outcome.
| Clause | Rating |
|---|---|
| Liquidation pref | Green |
| Anti-dilution | Amber |
| Board seats | Red |
| Drag-along | Amber |
Founders sign clauses they have never seen before, and only feel them years later at the exit.
A liquidation preference, a broad-based anti-dilution clause, a participating preferred, each one looks harmless on paper and changes your payout completely when the exit lands. TermLab teaches you what each clause means, rates it for founder-friendliness, and simulates the actual pound-for-pound outcome so you know what you are agreeing to before you sign.
Start with a one-page overview of what a term sheet is, what it is not, and which sections actually matter. TermLab puts the document in context before you look at a single clause.
Each clause gets a plain-English explanation, a real example from an actual term sheet, and a green, amber, or red rating for how founder-friendly it typically is. No legalese.
| Clause | Rating | Impact |
|---|---|---|
| 1× non-participating | Green | Low risk |
| 2× participating | Amber | Medium |
| Full ratchet | Red | High risk |
Three simulators: liquidation waterfall (see who gets paid first at each exit price), anti-dilution (model broad-based vs full-ratchet adjustments), and the full SAFE conversion simulator covering all 7 SAFE types. Import your cap table from CapLab.
Stage 4 gives you a negotiation checklist pre-populated with the clauses you marked as red in Stage 2. Add your own red lines, mark them accepted or contested, and export the whole thing as a PDF.
From Orient through to a negotiation checklist, with live simulations along the way.
It plugs into the tools on either side, so your numbers carry through the whole journey.
13 clauses rated. Three simulators. One negotiation checklist.
Open TermLab free →