Term Sheet Exercises

Jan 30, 2026 | Fundraising 101, Fundraising 101 - Practice and Templates

These exercises are designed to help you get more familiar with term sheets. 

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Scenario

  • VYou are BASIL, a university spin-out.
  • VYou have two products currently in beta form: Denning & Ziggurat
  • VYou must raise a minimum of 300k to reach your next milestones.
  • VYou have two potential leads, with two term sheets to decide between.
  • VYou must assess the merits of each term sheet for your company - what can you accept and what should you negotiate?
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The Term Sheets

  • Do you accept the valuation? Why or why not?
  • Which financial offer do you prefer? List your reasons.
  • Analyse the governance and related conditions so that you can record:
    • The terms you accept.
    • The terms for which you propose alternatives. To facilitate negotiation with the investors, prepare reasons for your substitutions.
  • What is your best alternative to no agreement?
  • How long until you are out of cash (1) now and (2) later, assuming you accept one or other investment on the table?

Comments on the Term Sheets

Below are some comments on the Term Sheets, written by David Gill. You can compare them with your own thoughts.

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