The number everyone stares at on a term sheet — the valuation — is the least informative thing on the page. Two term sheets at the same valuation can be worth wildly different amounts to you personally, and the difference lives in the clauses most first-time founders skim because they read like boilerplate. They are not boilerplate. Each clause is a small statement about what the investor expects to happen, and who they intend to protect when it does.
How to read the whole thing
https://medium.com/mentionfox/reading-a-term-sheet-for-intent-not-price-1d1ff630c189
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