This book is a methodical, comprehensive review of the contents of a typical venture capital or angel investor term sheet for a priced round. Despite the reference to valuation in the title, there is relatively little discussion of how investors and current shareholders determine a fair price. Instead, the discussion of valuation is primarily technical, focusing on the concepts of pre-money and post-money valuation, dilution, and so forth.

A particularly helpful feature of the book is that Alex Wilmerding provides "Investor Favorable", "Middle of the Road", and "Company Favorable" versions of many term-sheet elements; those examples gave me a concrete sense of what kind of terms one can expect in different situations. The book is also useful in that it serves as a reminder that in start-up investing the golden rule applies, in the sense that "He who has the gold makes the rules." Even the "Company Favorable" terms provide investors with a high level of control and various financial advantages in the event of liquidation.

While far from scintillating, I found this book to be an useful and efficient summary of typical terms and the mechanics of deal-making. A complete walk-through of the various terms, including some details around more obscure provisions like information rights, was helpful to me, both as a new angel investor and as a prospective start-up founder. It is unfortunate than there is no coverage of convertible debt term sheets, given how common convertible debt is in current start-up financing, but, never-the-less, I would recommend the book to anyone who expects to be negotiating (or reviewing) the details start-up term sheets.

Good book to understand term sheet negotiations in technology and other business who require venture capital funds.

Quite detailed and very useful.

very dry, more of a reference-type book; super helpful in understanding the complexity of the negotiations between investors / founders behind term sheets

Short but informative read. Concisely laid out all the elements and negotiating dynamics for a term sheet for vc and pe. Super helpful. Plan to keep this by my desk

Great summary of venture capital term sheets. This is very useful for anyone in the industry, or looking to get acquainted with the type of terms that are attached to early-stage investments.

Concise and a quick read. Good introduction to the sections and concepts of a term sheet.

A little over the top with legal language and the nuances of terms sheets. However, grasping a general overall understanding of how financings are consummated at essential to playing the “game” right in the entrepreneurship and venture capital ecosystem. The last chapter highlighted everything an entrepreneur should look out for when viewing term sheets with a lawyer and then navigating negotiations with a particular firm regarding the constraints within in the document. Extremely useful knowledge to have in the back pocket.

A pretty straightforward take to explaining each line item of the term sheet. Would be good if there were more examples on valuation calculations. Nonetheless, brief & concise - excellent for those newly-in the VC space

excellent book

not a fun read, but an essential reference for anyone raising investment capital

An in-depth look at term sheets and valuations which includes a term sheet from a leading law firm with line-by-line descriptions of each clause, what can or should be negotiated, and other important points.