Term sheet clause 11 of 25 · Control
Voting in a term sheet
In plain English: Preferred usually votes with common on an as-converted basis. Typical: As-converted voting.
Founder-friendly
As-converted.
Investor-friendly
Super-voting preferred.
What to watch for
Red flag
Special voting rights beyond protective provisions.
How to model it
This clause doesn't change the maths of your round, but it changes how you run the company. Discuss it with your lawyer and keep it in mind when you compare offers.
Not legal advice. Norms vary by country and market cycle. Have a startup lawyer review your term sheet before you sign.