This Is What 'A Founder-Friendly Term Sheet' Looks Like, Says 28-Year-Old Startup Investor Who Already Sold His Own Company

Business Insider

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Sam Altman

Loc.ly

Sam Altman, a 28-year-old entrepreneur-turned-investor, has a proprietary term sheet that he believes is friendlier to founders than the typical term sheet.

Altman founded location-based social networking site Loopt during his sophomore year at Stanford University. He sold it to mobile payments company Green Dot Corp. last year for $43.4 million. 

Today, Altman is a partner at top Silicon Valley accelerator Y Combinator. Y Combinator has its own standard term sheet, but Altman uses his "founder-friendly" term sheet when he invests outside of YC.

It's one that basically reflects what he wanted when he was a founder, Altman writes on his blog. What's most important about it, Altman says, is what's not in it, such as an expiration date, a confidentiality agreement, and legal fees. 

Head on over to Altman's blog to take a look at his founder-friendly term sheet.



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