What is the difference between pre-money and post-money?

Pre-money is the company's value before new investment; post-money is pre-money plus the new money. The builder adds the investment to the pre-money figure to derive post-money and the investor's resulting percentage.

How is the investor's ownership calculated?

Ownership equals the investment amount divided by the post-money valuation, times 100. The builder updates this automatically when you change either the valuation or the amount invested.

What does a 1x non-participating liquidation preference mean?

It means investors get their money back first, once, before common holders share the rest — but they do not double-dip. Non-participating is founder-friendly and the most common seed-stage term.

Is this a legally binding document?

No. This is a non-binding outline to align on key economics and terms before lawyers draft the real document. Always have qualified counsel review any actual term sheet.

What are protective provisions?

They are veto rights that require investor consent for major actions like selling the company, raising new debt, or changing the share structure. The outline lists common ones so you can negotiate scope early.

Term Sheet Outline Builder

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A clear term sheet outline before the lawyers get involved

A term sheet sets the economics and control of an investment round. This builder produces a structured, non-binding outline from a few inputs — valuation, amount, and a handful of standard terms — and computes the deal math so both sides start from the same numbers.

How it works

Enter the pre-money valuation and the investment amount. The tool adds them to get the post-money valuation, then computes the investor’s ownership as investment divided by post-money. It assembles the economics into a standard outline structure: round and security type, valuation block, liquidation preference, anti-dilution protection, the option pool, board composition, voting and protective provisions, and pro-rata rights. Each term defaults to a common, founder-reasonable choice that you can change with a dropdown, so the result reflects a realistic early-stage deal.

Tips and example

A £2,000,000 pre-money with a £500,000 investment gives a £2,500,000 post-money and 20% to the investor.
Prefer a 1x non-participating liquidation preference at seed; participating preferences favour investors at exit.
Broad-based weighted-average anti-dilution is the standard, founder-friendly choice over full-ratchet.
This is an outline only — never sign anything without experienced startup counsel reviewing it.