What are Term Sheets? Every Clause a Founder Must Understand
by Adriana Rego March 25, 2026Nothing scares first-time Indian founders more than receiving their first term sheet.Most end up asking “What are term sheets?”
Seed round is where Indian startups go from first capital to first traction. You need a winning pitch deck, a clean cap table, a strong investor pipeline, and proof that customers actually love what you’re building.”
$100k – 500k typical seed round size India 15-20% equity typical at seed 200+ active seed VCs in India seed funding India 2026 pitch deck India template cap table template India term sheet India explained Download Fund Raising Kit → Pitch Deck GuideThe 3 things that kill seed rounds in India
📊 Weak or missing traction data Seed VCs in India want to see early signal — DAU/MAU, retention curves, NPS, or early revenue. Founders who can't present clean metrics lose credibility in the first meeting. 📃 A pitch deck that doesn't answer the right questions Most Indian founders build decks that explain the product, not the investment opportunity. VCs decide in 3 minutes — your deck must answer: Why now? Why you? How big? ⚖ Not understanding the term sheet before signing Liquidation preferences, anti-dilution clauses, and pro-rata rights can significantly affect founder outcomes at exit. Too many Indian founders sign term sheets they don't fully understand.Fundraising playbook seed round
Explore all articlesNothing scares first-time Indian founders more than receiving their first term sheet.Most end up asking “What are term sheets?”
Here’s a complete, no-fluff pitch deck review guide to building a seed-stage pitch deck that actually works in India in 2026.
The exact metrics Indian founders at seed stage should obsess over in 2026 — from retention and unit economics to burn rate and runway. No vanity metrics, just what actually moves the needle.
Free templates for all idea stage founders
Explore all templates 📝 Startup Idea Validation Scorecard Excel Startup Idea Validation 🔒 TAM/SAM/SOM Calculator HTML Access Calculator 💰 Cofounder agreement template PDF Cofounder AgreementTools for seed stage founders
Equity Dilution Calculator Model your cap table through seed, Series A, and beyond. See exactly how each round affects founder ownership before you sign. Calculate → Pitch Deck Scorer Upload or describe your pitch deck — get an AI-powered score across the 10 criteria Indian seed VCs evaluate most. Score My Deck → Burn Rate & Runway Calculator Know exactly how much runway you have, what burn rate is acceptable, and when to start your next raise. Calculate → Active VCs in India Explore full directory 100X 100X.VC India-only pre-seed ₹25L / 5% Ah AngelList India Angel syndicates ₹10–50L T3 Titan Capital Consumer, B2C India ₹25–75L +72 View All Full directory See all →