---
title: What is a Series A Funding Term Sheet?
description: A Series A funding term sheet is a summary of proposed terms for investment in a startup company. This article provides more detail on this topic, along with links to additional resources.
---

[Startups Blog ](https://www.fundz.net/blog)

# [What is a Series A Funding Term Sheet?](https://www.fundz.net/blog/what-is-a-series-a-funding-term-sheet)

 Written by [Darren Wall](https://www.fundz.net/blog/author/darren-wall) | Oct 14, 2018 12:19:21 PM

Whether it is a [Series A funding ](https://www.fundz.net/what-is-series-a-funding-series-b-funding-and-more)or another funding round, each round of financing has its own terms and definitions. Normally when you begin the negotiations with an outside investment firm, a term sheet, or summary of their proposed terms for investment, is presented.

In the world of startup company financing, a *Term Sheet* is defined as a non-binding agreement that sets forth the basic terms and conditions under which a proposed investment will be made. It is meant to guide legal counsel for construction of a final agreement. 

Some Important Elements of the Term Sheet are:

- **Valuation** - *What is the agreed upon pre-money valuation of the company?*
- **Liquidation Rights** - *Who gets what and in what priority if the company is dissolved or gets sold?*
- **Founder Vesting Period** - *When do the Founder(s) vest their shares? 3-4 years is typical.*
- **Voting Rights** - *How much veto power will the investor be given regarding corporate actions such as acquisitions or a sales of the company?*
- **Options Pool** - *How many shares will be set aside for new employees, future investors, etc? What is the impact on valuation?*
- **Anti-Dilution** - *What are the specific anti-dilution provisions in place? Most venture capital funding rounds have anti-dilution provisions, but ones that are broad based limit the Founders.*
- **Board of Directors Assignment** - *How much control will the investor seek by way of board seats? 2-3 seats is typical.*

**Below are some additional resources:**

Watch this [Simulated](https://www.youtube.com/watch?v=fb5Lm_BbR_E)[ term sheet negotiation video](https://www.youtube.com/watch?v=fb5Lm_BbR_E) 

Review these [Term sheet templates](https://www.eloquens.com/category/legal/startup-term-sheets/162)

Download a [Series A Preferred Stock Term Sheet Example](https://www.askthevc.com/docs/SeriesATermSheet.doc)  

[Track All Seed, Series A Funding & Subsequent Funding Rounds with a Fundz Pro Subscription](https://www.fundz.net/)

[View full post](https://www.fundz.net/blog/what-is-a-series-a-funding-term-sheet)

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