Term sheet negotiation is the structured back-and-forth between founders and investors on the specific terms of a financing once the investor has expressed serious interest. It typically covers valuation (pre-money), investment size, liquidation preference (1x vs higher; participating vs non-participating), anti-dilution (broad-based vs narrow), option pool refresh (pre-money vs post-money), protective provisions, board composition, and other material terms. The negotiation period typically lasts 1-3 weeks and the result is a signed term sheet that anchors the formal financing documents. It is the moment where the actual deal economics get determined, and the closing act of [Lead Investor Conversion].
The negotiation ...