Pre-Term Sheet

During the Engagement phase, we determined that your startup likely meets our general portfolio criteria. Now, we'll both double-check that assessment and figure our what financial terms make sense using the following steps.

• Financial Review. We'll dig deeper into your startup's financial situation. At this point, you will need to disclose the identities of all your current investors.
• Progress Review. We'll dig deeper into the state of your technical and business status. At this point, you will need to reveal information that you may consider highly confidential. We are willing to sign an NDA at this stage.
• Term Sheet Variables. The biggest term sheet variable is, of course, pre-money valuation. We use a valuation approach summarized in this blog post, which we will walk you through. Then there are some other terms where we'll need to know your preferences such as total round size and investor Board seats.

While we are reasonably good at predicting in the Engagement phase whether a startup meets our criteria, it's not too uncommon for us to discover factors during the Pre-Term Sheet phase that disqualify a startup from our portfolio. Moreover, sometimes there are no financial terms that make sense.

If everything does line up, we will issue you a term sheet and move on to the Term Sheet phase.