Term sheets can be intimidating as a first-time founder. As it is likely the first time you've seen a term sheet, the intricacies of the deal can be difficult to understand. You can spend hours trying to understand a term sheet and what exactly makes up a "good" term sheet. As the team at YC writes, "we've noticed a common problem: founders don't know what "good" looks like in a term sheet."
In order to help founders best understand their term sheets, many firms and individuals have come up with their own term sheet templates. In fact, many investors and founders now use a 1-page term sheet template. Check out our breakdown of term sheet components with a few templates below.