409A Valuation: The Tax Number Behind Every Startup Stock Option
A 409A valuation is the IRS-required fair market value of your startup's common stock. Here's how it's computed, when to refresh, and why it matters for every option grant.
Venture Capital Deal Terms & Term Sheet Guides
Deal terms determine who wins in exit scenarios and how much control investors have over company decisions. Our deal-terms guides explain the economics and governance provisions founders encounter in seed through growth rounds.
Key Deal Terms Explained
- Valuation & equity: Pre-money, post-money, and option pool sizing
- Liquidation preferences: Participating vs. non-participating, multiples
- Control rights: Board seats, protective provisions, and veto rights
- Investor rights: Pro rata, information rights, and drag-along provisions
Read venture capital deal terms explainers below.
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Anti-Dilution Protection: Weighted Average vs Full Ratchet, Explained
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Liquidation Preference, Explained: 1x, 2x, Participating vs Non-Participating
Liquidation preference is the single most important term on a VC term sheet. Here's how 1x non-participating, participating, and multi-preferences change exit payouts.
Pre-Money vs Post-Money Valuation: The Math Every Founder Must Understand
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Pro-Rata Rights in VC: Follow-On Investing, Explained
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Board Seats and VC Governance: How Startup Boards Actually Work
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