This doesn't address your particular question, but I like to recommend Eric Koester's guides to term sheet newbies: http://www.avvo.com/attorneys/20007-dc-eric

This doesn't address your particular question, but I like to recommend Eric Koester's guides to term sheet newbies: http://www.avvo.com/attorneys/20007-dc-eric-koester-1214516/guides.html http://www.avvo.com/attorneys/20007-dc-eric-koester-1214516/... There are several pages of articles & you might have to read and re-read a few times. It's dense, but clear.