PHARMAPRO
Term Sheet Analyzer
Stop guessing and start negotiating with confidence.
Get a clear picture of your term sheet
This tool helps early-stage startup founders understand and evaluate term sheets. It provides a user-friendly form-based calculator that analyzes key terms and conditions, offering insights and comparisons to industry standards. This empowers founders to make informed decisions and negotiate favorable terms for their company.
Fun-raise timeline and Term-sheet
1
Investor outreach
Cold emails and warm introductions to investors
2
Pitch deck
Share pitch deck with interested investors
3
Pitch & Engage
Present the investment story to investors; Follow-up meetings
4
IC Meeting
VC investment committee meeting to review the deal
5
Term-sheet
Review investment terms, negotiate and sign
6
Diligence & Documents
Due-diligence and long-form agreements SHA etc
7
Final IC Meeting
Review diligence findings and any revisions to the offer
8
Money in the Bank
Expect 3 - 9 months for a successful fund-raise
Analyze and Negotiate with Confidence
Our tool empowers you to understand your term sheet and negotiate better outcomes.
- Term Sheet AnalysisUpload your term sheet and our tool will analyze key provisions, highlighting potential red flags and areas for improvement.
- Red Flag DetectionIdentify hidden risks and unfavorable clauses that could impact your future success.
- Negotiation InsightsGain actionable insights and data-driven recommendations to help you negotiate stronger terms.
FAQs
After seeing too many founders get caught off guard by terms they didn't fully understand, I created this simple tool to help you evaluate term sheets. It's a tool to help you review a term sheet and understand its potential impact on your company.
Before I explain how it works, let me be clear: this isn't about valuation, check size, or even how much you like the VC. Those matter, but we're focusing purely on the legal stuff that could come back to bite you later.
Before I explain how it works, let me be clear: this isn't about valuation, check size, or even how much you like the VC. Those matter, but we're focusing purely on the legal stuff that could come back to bite you later.
We look at 10 key terms:
- 5 key terms that focus on the money (Economics)
- 5 key term that decide control (Board and Decision Making)
Think of it like a score card:
- Founder-friendly terms get +1
- Industry standard terms get 0
- Investor-friendly at the cost of the founder get -1
The best possible score is +10, the worst is -10. A typical "industry standard" deal scores between 0 and 2.
Some terms may matter more or less depending on your situation.
- 5 key terms that focus on the money (Economics)
- 5 key term that decide control (Board and Decision Making)
Think of it like a score card:
- Founder-friendly terms get +1
- Industry standard terms get 0
- Investor-friendly at the cost of the founder get -1
The best possible score is +10, the worst is -10. A typical "industry standard" deal scores between 0 and 2.
Some terms may matter more or less depending on your situation.
I know there's a lot to consider when choosing an investor - their reputation, the check size, the terms, and most importantly, whether you trust them. Use our Term Sheet Grader to understand the terms, and also to know how your investor thinks about working with founders.
Pay attention to how investors handle term-sheet discussions. Are they explaining things clearly? Working to find solutions? Or just telling you "this is standard" and pushing ahead?
This is your preview of how board meetings will go when things get tough. Trust me, you want to know now.
Pay attention to how investors handle term-sheet discussions. Are they explaining things clearly? Working to find solutions? Or just telling you "this is standard" and pushing ahead?
This is your preview of how board meetings will go when things get tough. Trust me, you want to know now.
Yes, absolutely. It is part of our toolkit for early-stage healthcare founders make better decisions.
As a founder, your job isn't just to get the money - it's to make sure you'll still be happy with the deal three years from now.
As a founder, your job isn't just to get the money - it's to make sure you'll still be happy with the deal three years from now.