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Must read for every entrepreneur!  When your product and service can command these kind of terms, for sure your company is worth investing in. "A founder-friendly term sheet When I invest (outside of YC) I make offers with the following term sheet.  I've tried to make the terms reflect what I wanted when I was a founder.  A few people have asked me if I'd share it, so here it is.  I think it's pretty founder-friendly. If you believe the upside risk theory, then it makes sense to offer compelling terms and forgo some downside protection to get the best companies to want to work with you. What's most important is what's not in it: *No option pool.  Taking the option pool out of the pre-money valuation (ie, diluting only founders and not investors for future hires) is just a way to artificially manipulate valuation.  New hires benefit everyone and should dilute everyone. *The company doesn't have to pay any of my legal fees.  Requiring the company to pay investors' legal fees always struck me as particularly egregious-the company can probably make better use of the money than investors can, so I'll pay my own legal fees for the round (in a simple deal with no back and forth they always end up super low anyway). *No expiration.  I got burned once by an exploding offer and haven't forgotten it; the founders can take as much time as they want to think about it.  In practice, people usually decide pretty quickly. *No confidentiality.  Founder/investor relationships are long and important.  The founders should talk to whomever they want, and if they want to tell people what I offered them, I don't really care.  Investors certainly tell each other what they offer companies. (Once we shake hands on a deal, of course, I expect the founders to honor it.) *No participating preferred, non-standard liquidation preference, etc.  There is a 1x liquidation preference, but I'm willing to forgo even that and buy common shares (and sometimes