CEO · Template · Intermediate · Saves 25+ hours
Term Sheet Comparison Template
A template for comparing multiple term sheets.
What's included
- Key term comparison
- Economic comparison
- Control comparison
- Total value analysis
- Decision framework
Best used when
- Comparing multiple offers
- Making term sheet decision
- Board discussions
- Negotiation strategy
The template
The Template
COMPARISON PHILOSOPHY
Term Sheet Comparison Fundamentals
TERM SHEET COMPARISON PHILOSOPHY
WHY STRUCTURED COMPARISON MATTERS:
☐ Apples-to-apples evaluation
☐ Reveals hidden differences
☐ Supports decision-making
☐ Creates leverage in negotiation
☐ Documents trade-offs
☐ Aligns stakeholders
COMPARISON PRINCIPLES:
1. LOOK BEYOND HEADLINE VALUATION
☐ Effective valuation matters
☐ Option pool impact
☐ Preference stack effects
☐ Total economics, not just price
2. CONSIDER THE INVESTOR, NOT JUST TERMS
☐ Value-add potential
☐ Reputation and network
☐ Portfolio synergies
☐ Long-term partnership
3. WEIGHT WHAT MATTERS TO YOU
☐ Stage-appropriate priorities
☐ Company-specific needs
☐ Founder preferences
☐ Strategic considerations
4. PROJECT FORWARD
☐ Impact on future rounds
☐ Exit scenario implications
☐ Governance evolution
☐ Relationship trajectory
COMMON COMPARISON MISTAKES:
☐ Focusing only on valuation
☐ Ignoring option pool tricks
☐ Overlooking liquidation preference
☐ Underweighting investor fit
☐ Not projecting forward scenarios
COMPREHENSIVE COMPARISON
Complete Side-by-Side Analysis
TERM SHEET COMPARISON MATRIX
═══════════════════════════════════════
OFFER OVERVIEW
═══════════════════════════════════════
| Detail | Offer A | Offer B | Offer C |
|--------|---------|---------|---------|
| Lead Investor | | | |
| Lead Partner | | | |
| Fund Size | $___M | $___M | $___M |
| Fund Stage | | | |
| Check Size | $___M | $___M | $___M |
| Term Sheet Date | | | |
| Expiration | | | |
═══════════════════════════════════════
ECONOMIC TERMS
═══════════════════════════════════════
VALUATION:
| Term | Offer A | Offer B | Offer C | Best |
|------|---------|---------|---------|------|
| Pre-money | $___M | $___M | $___M | |
| Investment | $___M | $___M | $___M | |
| Post-money | $___M | $___M | $___M | |
| Price/share | $_____ | $_____ | $_____ | |
OPTION POOL:
| Term | Offer A | Offer B | Offer C | Best |
|------|---------|---------|---------|------|
| Current pool | ___% | ___% | ___% | |
| Pool increase | ___% | ___% | ___% | |
| Final pool | ___% | ___% | ___% | |
| Pool timing | Pre/Post | Pre/Post | Pre/Post | |
LIQUIDATION PREFERENCE:
| Term | Offer A | Offer B | Offer C | Best |
|------|---------|---------|---------|------|
| Multiple | ___x | ___x | ___x | |
| Participation | Yes/No | Yes/No | Yes/No | |
| Part. cap | ___x | ___x | ___x | |
| Seniority | | | | |
ANTI-DILUTION:
| Term | Offer A | Offer B | Offer C | Best |
|------|---------|---------|---------|------|
| Type | | | | |
| Carve-outs | | | | |
DIVIDENDS:
| Term | Offer A | Offer B | Offer C | Best |
|------|---------|---------|---------|------|
| Rate | ___% | ___% | ___% | |
| Cumulative? | Yes/No | Yes/No | Yes/No | |
═══════════════════════════════════════
CONTROL TERMS
═══════════════════════════════════════
BOARD:
| Term | Offer A | Offer B | Offer C | Best |
|------|---------|---------|---------|------|
| Total seats | | | | |
| Founder seats | | | | |
| Investor seats | | | | |
| Independent | | | | |
| Control | F/I/Bal | F/I/Bal | F/I/Bal | |
PROTECTIVE PROVISIONS:
| Provision | A | B | C |
|-----------|---|---|---|
| Amend charter | ☐ | ☐ | ☐ |
| New stock class | ☐ | ☐ | ☐ |
| Merge/sell | ☐ | ☐ | ☐ |
| Debt threshold | $___K | $___K | $___K |
| CEO approval | ☐ | ☐ | ☐ |
| Budget approval | ☐ | ☐ | ☐ |
| Total provisions | ___ | ___ | ___ |
DRAG-ALONG:
| Term | Offer A | Offer B | Offer C | Best |
|------|---------|---------|---------|------|
| Threshold | ___% | ___% | ___% | |
| Who triggers | | | | |
═══════════════════════════════════════
INVESTOR RIGHTS
═══════════════════════════════════════
| Right | Offer A | Offer B | Offer C |
|-------|---------|---------|---------|
| Pro-rata | Yes/No | Yes/No | Yes/No |
| Super pro-rata | Yes/No | Yes/No | Yes/No |
| Info rights | | | |
| Registration | | | |
| ROFR | | | |
| Co-sale | | | |
═══════════════════════════════════════
FOUNDER TERMS
═══════════════════════════════════════
| Term | Offer A | Offer B | Offer C | Best |
|------|---------|---------|---------|------|
| Vesting required | Yes/No | Yes/No | Yes/No | |
| Vesting schedule | | | | |
| Acceleration | None/S/D | None/S/D | None/S/D | |
| Non-compete | ___mo | ___mo | ___mo | |
═══════════════════════════════════════
PROCESS TERMS
═══════════════════════════════════════
| Term | Offer A | Offer B | Offer C | Best |
|------|---------|---------|---------|------|
| No-shop | ___ days | ___ days | ___ days | |
| Expected close | ___ wks | ___ wks | ___ wks | |
| Legal fee cap | $___K | $___K | $___K | |
| Conditions | | | | |
EFFECTIVE VALUATION ANALYSIS
True Economics Calculator
EFFECTIVE VALUATION CALCULATOR
═══════════════════════════════════════
STATED VS. EFFECTIVE VALUATION
═══════════════════════════════════════
OFFER A:
Stated pre-money: $_____M
Option pool increase: ___% = $_____M (value)
Effective pre-money: $_____M
Difference: -$_____M (___%)
OFFER B:
Stated pre-money: $_____M
Option pool increase: ___% = $_____M (value)
Effective pre-money: $_____M
Difference: -$_____M (___%)
OFFER C:
Stated pre-money: $_____M
Option pool increase: ___% = $_____M (value)
Effective pre-money: $_____M
Difference: -$_____M (___%)
═══════════════════════════════════════
FOUNDER DILUTION COMPARISON
═══════════════════════════════════════
| Metric | Offer A | Offer B | Offer C |
|--------|---------|---------|---------|
| Current founder % | ___% | ___% | ___% |
| Pool dilution | -___% | -___% | -___% |
| Round dilution | -___% | -___% | -___% |
| Post-round founder % | ___% | ___% | ___% |
| Total dilution | -___% | -___% | -___% |
═══════════════════════════════════════
SHARE PRICE COMPARISON
═══════════════════════════════════════
| Metric | Offer A | Offer B | Offer C |
|--------|---------|---------|---------|
| Stated price/share | $_____ | $_____ | $_____ |
| Effective price/share | $_____ | $_____ | $_____ |
| Premium/(Discount) | ___% | ___% | ___% |
Exit Scenario Comparison
EXIT SCENARIO ANALYSIS
═══════════════════════════════════════
SCENARIO 1: $50M EXIT
═══════════════════════════════════════
| Outcome | Offer A | Offer B | Offer C |
|---------|---------|---------|---------|
| Investor proceeds | $_____M | $_____M | $_____M |
| Founder proceeds | $_____M | $_____M | $_____M |
| Employee pool | $_____M | $_____M | $_____M |
Winner at $50M: Offer ___
═══════════════════════════════════════
SCENARIO 2: $100M EXIT
═══════════════════════════════════════
| Outcome | Offer A | Offer B | Offer C |
|---------|---------|---------|---------|
| Investor proceeds | $_____M | $_____M | $_____M |
| Founder proceeds | $_____M | $_____M | $_____M |
| Employee pool | $_____M | $_____M | $_____M |
Winner at $100M: Offer ___
═══════════════════════════════════════
SCENARIO 3: $250M EXIT
═══════════════════════════════════════
| Outcome | Offer A | Offer B | Offer C |
|---------|---------|---------|---------|
| Investor proceeds | $_____M | $_____M | $_____M |
| Founder proceeds | $_____M | $_____M | $_____M |
| Employee pool | $_____M | $_____M | $_____M |
Winner at $250M: Offer ___
═══════════════════════════════════════
SCENARIO 4: $500M EXIT (Home Run)
═══════════════════════════════════════
| Outcome | Offer A | Offer B | Offer C |
|---------|---------|---------|---------|
| Investor proceeds | $_____M | $_____M | $_____M |
| Founder proceeds | $_____M | $_____M | $_____M |
| Employee pool | $_____M | $_____M | $_____M |
Winner at $500M: Offer ___
═══════════════════════════════════════
LIQUIDATION PREFERENCE IMPACT
═══════════════════════════════════════
Exit value needed for common to receive:
| Amount | Offer A | Offer B | Offer C |
|--------|---------|---------|---------|
| Any money | $_____M | $_____M | $_____M |
| 1x return | $_____M | $_____M | $_____M |
| 2x return | $_____M | $_____M | $_____M |
INVESTOR COMPARISON
Investor Value-Add Assessment
INVESTOR VALUE-ADD COMPARISON
═══════════════════════════════════════
FIRM PROFILE
═══════════════════════════════════════
| Factor | Offer A | Offer B | Offer C |
|--------|---------|---------|---------|
| Firm AUM | $___B | $___B | $___B |
| This fund size | $___M | $___M | $___M |
| Stage focus | | | |
| Sector focus | | | |
| Geography | | | |
═══════════════════════════════════════
PORTFOLIO RELEVANCE
═══════════════════════════════════════
| Factor | Offer A | Offer B | Offer C |
|--------|---------|---------|---------|
| Similar companies | | | |
| Potential customers | | | |
| Potential partners | | | |
| Talent network | | | |
| Conflicts? | | | |
═══════════════════════════════════════
PARTNER ASSESSMENT
═══════════════════════════════════════
| Factor | Offer A | Offer B | Offer C |
|--------|---------|---------|---------|
| Partner name | | | |
| Board experience | | | |
| Operating experience | | | |
| Sector expertise | | | |
| Reputation | | | |
| Availability | | | |
═══════════════════════════════════════
REFERENCE CHECK SUMMARY
═══════════════════════════════════════
OFFER A - [Investor]:
Reference 1: _____________________
Key feedback: _____________________
Reference 2: _____________________
Key feedback: _____________________
Overall sentiment: ☐ Positive ☐ Mixed ☐ Negative
OFFER B - [Investor]:
Reference 1: _____________________
Key feedback: _____________________
Reference 2: _____________________
Key feedback: _____________________
Overall sentiment: ☐ Positive ☐ Mixed ☐ Negative
OFFER C - [Investor]:
Reference 1: _____________________
Key feedback: _____________________
Reference 2: _____________________
Key feedback: _____________________
Overall sentiment: ☐ Positive ☐ Mixed ☐ Negative
═══════════════════════════════════════
FOLLOW-ON CAPACITY
═══════════════════════════════════════
| Factor | Offer A | Offer B | Offer C |
|--------|---------|---------|---------|
| Follow-on reserves | $_____M | $_____M | $_____M |
| Historical follow-on % | ___% | ___% | ___% |
| Multi-stage fund? | Yes/No | Yes/No | Yes/No |
| Growth fund available? | Yes/No | Yes/No | Yes/No |
DECISION FRAMEWORK
Weighted Decision Matrix
TERM SHEET DECISION MATRIX
═══════════════════════════════════════
SCORING CRITERIA (1-10)
═══════════════════════════════════════
| Factor | Weight | A | B | C | Notes |
|--------|--------|---|---|---|-------|
| ECONOMICS (40%) | | | | | |
| Effective valuation | 15% | | | | |
| Liquidation terms | 10% | | | | |
| Dilution impact | 10% | | | | |
| Exit scenarios | 5% | | | | |
| | | | | | |
| INVESTOR (30%) | | | | | |
| Partner fit | 10% | | | | |
| Value-add potential | 10% | | | | |
| Firm reputation | 5% | | | | |
| Follow-on capacity | 5% | | | | |
| | | | | | |
| CONTROL (15%) | | | | | |
| Board composition | 8% | | | | |
| Protective provisions | 7% | | | | |
| | | | | | |
| PROCESS (15%) | | | | | |
| Speed to close | 8% | | | | |
| Conditions | 4% | | | | |
| Flexibility | 3% | | | | |
═══════════════════════════════════════
WEIGHTED SCORES
═══════════════════════════════════════
Offer A: _____ / 10
Offer B: _____ / 10
Offer C: _____ / 10
═══════════════════════════════════════
QUALITATIVE FACTORS
═══════════════════════════════════════
GUT CHECK:
| Question | A | B | C |
|----------|---|---|---|
| Want them on board? | | | |
| Trust them in hard times? | | | |
| Excited about partnership? | | | |
| Would call them first? | | | |
NON-NEGOTIABLES CHECK:
| Factor | A | B | C |
|--------|---|---|---|
| ☐ [Non-negotiable 1] | Pass/Fail | Pass/Fail | Pass/Fail |
| ☐ [Non-negotiable 2] | Pass/Fail | Pass/Fail | Pass/Fail |
| ☐ [Non-negotiable 3] | Pass/Fail | Pass/Fail | Pass/Fail |
═══════════════════════════════════════
FINAL RECOMMENDATION
═══════════════════════════════════════
RECOMMENDED: Offer ___
Rationale:
1. _________________________________________
2. _________________________________________
3. _________________________________________
Concerns to address in negotiation:
1. _________________________________________
2. _________________________________________
Backup option: Offer ___
Reason: _________________________________________
Decision Summary Table
| Category | Winner | Key Reason |
|---|---|---|
| Economics | Offer ___ | |
| Investor Fit | Offer ___ | |
| Control Terms | Offer ___ | |
| Process | Offer ___ | |
| Overall | Offer ___ |
Frequently asked questions
What is the Term Sheet Comparison Template?
A template for comparing multiple term sheets.
Who is the Term Sheet Comparison Template for?
It is built for CEOs and their teams working on Fundraising. The AI coach adapts it to your company, stage, and goals.
How long does the Term Sheet Comparison Template take to use?
It saves roughly 25+ hours versus building from scratch. Our AI coach can tailor the template to your situation in minutes, then hand you a step-by-step plan.
Is the Term Sheet Comparison Template free?
Yes. You can read the full template and start getting coached through it for free. Sign in to save your tailored version and track your next steps.
How does the AI coach help with the Term Sheet Comparison Template?
The coach teaches you the framework, asks a few questions about your business, tailors the template to you, and gives you measurable next steps to execute.