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CBCapital BearingsFounder finance field guide

Prepare Diligence

Venture Capital Term Sheet Basics

Vocabulary to recognize before counsel review.

A founder planning venture capital term sheet basics with a notebook, calculator, and blank working papers

Short answer

Which economic and control terms should a founder identify? Capital Bearings treats this as an education and preparation question. The route may involve legal, tax, lender, portal, or agency decisions that require the relevant professional or official process.

Use this guide to identify the trade-off, then compare it with the startup funding options comparison and the source named below. It does not select a route for a particular company.

Start with the constraint, not the label

Which economic and control terms should a founder identify? A useful first pass is to write down the business constraint, the evidence already available, and the obligation that would be hardest to reverse. That keeps a financing label from doing more work than it can support.

The relevant comparison is not a generic ranking. It is the fit between the company’s next milestone, its cash pattern, its ownership tolerance, and the documentation a counterparty or program requires.

Continue the route

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