Term Sheet basics – Levers of valuation :

Pay-to-Play will affect investors that don’t participate in future rounds, so it is included along with the valuation terms. Additionally, closing conditions (or conditions precedent to financing) can have multiple requirements affecting valuation so it is included in this section.

For founders, vesting is an important subject but not always understood with regards to acceleration (single or double trigger).

Here is a good post by Fred Wilson on lead investors.

A No Shop Agreement will appear in the later part of the process.

Term Sheets – Governance/Control

Term Sheets – Preferred Stock Rights

Example Term Sheets and Equity Financing Docs

Two sets of documents are included, and are a great complement to all of the material above.