What are the differences between various term sheets?

What are the key differences between a venture capital term sheet and an angel investment term sheet?

The main differences include the amount of investment, valuation, and terms of control. VC term sheets often involve larger sums and more complex terms.

Can you explain what a liquidation preference is in these term sheets?

Sure! A liquidation preference determines the order in which investors get paid back in the event of a liquidation. VCs typically have a 1x preference, meaning they get their investment back before common shareholders.

What about the voting rights? How do they differ?

Voting rights can vary significantly. VCs often negotiate for more control, including board seats and veto rights, while angel investors may have less influence.

Are there any common clauses that I should look out for?

Yes, common clauses include anti-dilution provisions, vesting schedules, and rights of first refusal. It's important to understand these before signing.