Term sheet comparison
Compare two offers by what the founders get at ten sale prices, and find the sale price where the better offer changes.
Comparison
Two offers, ten sale prices
The founders own all of the company before the round. Change the terms of each offer and compare what the founders get when the company sells.
Offer A
$72M post-money. The investor owns 16.67%.
Preference multiple
Participation
Offer B
$60M post-money. The investor owns 20%.
Preference multiple
Participation
- Better offer changes at
- $450M
- Offer A pays more at higher prices
- Largest gap
- $13M
- Offer B pays more at a $60M sale
- Post-money, A and B
- $72M / $60M
- The headline valuations
What the founders get
The larger payout at each sale price is in bold.
| Sale price | Offer A | Offer B | Better offer |
|---|---|---|---|
| $10M | $0 | $0 | Same |
| $20M | $1.67M | $8M | B by $6.33M |
| $30M | $10M | $18M | B by $8M |
| $50M | $26.67M | $38M | B by $11.33M |
| $80M | $51.67M | $64M | B by $12.33M |
| $120M | $85M | $96M | B by $11M |
| $200M | $151.67M | $160M | B by $8.33M |
| $300M | $235M | $240M | B by $5M |
| $500M | $401.67M | $400M | A by $1.67M |
| $1B | $818.33M | $800M | A by $18.33M |
How much more the founders get with Offer B (less than $0: Offer A pays more)
Offer A has the higher headline valuation: $72M post-money against $60M. Offer B pays the founders more at each sale price up to $450M. Offer A pays more only at a higher price, in a sale 6.25 times the higher post-money valuation.