---
title: "Term Sheets"
url: https://reddsvip.com/category/term-sheets/
description: "Entries filed under Term Sheets on the REDDS Venture Investment Partners weblog."
---

# Term Sheets

Entries filed under Term Sheets.

## October 30, 2017

### [Reading a Capitalization Table](https://reddsvip.com/2017/10/30/reading-a-capitalization-table/)

A capitalization table is the ledger of who owns a company. Founders, employees and investors each hold their share, and the table records every class of stock and every option beside its holder.

The useful reading is the fully diluted view. It counts not only the shares outstanding today but everything that could become a share: options granted, options still in the pool, warrants, and notes waiting to convert.

[(more…)](https://reddsvip.com/2017/10/30/reading-a-capitalization-table/)

Filed under: [Term Sheets](https://reddsvip.com/category/term-sheets/) | [Permalink](https://reddsvip.com/2017/10/30/reading-a-capitalization-table/) | Comments off

## September 12, 2017

### [Pro Rata Rights, in Plain Terms](https://reddsvip.com/2017/09/12/pro-rata-rights-in-plain-terms/)

A pro rata right is the right to keep your percentage. An investor who owns a tenth of a company may buy a tenth of the next round, and dilution passes by to that extent.

[(more…)](https://reddsvip.com/2017/09/12/pro-rata-rights-in-plain-terms/)

Filed under: [Term Sheets](https://reddsvip.com/category/term-sheets/) | [Permalink](https://reddsvip.com/2017/09/12/pro-rata-rights-in-plain-terms/) | Comments off

## March 14, 2017

### [Liquidation Preferences Without the Jargon](https://reddsvip.com/2017/03/14/liquidation-preferences-without-the-jargon/)

A liquidation preference decides who is paid first when a company is sold. The common arrangement returns an investor's money before the remaining proceeds are shared.

[(more…)](https://reddsvip.com/2017/03/14/liquidation-preferences-without-the-jargon/)

Filed under: [Term Sheets](https://reddsvip.com/category/term-sheets/) | [Permalink](https://reddsvip.com/2017/03/14/liquidation-preferences-without-the-jargon/) | Comments off