For any founder, whether a first-timer or a serial entrepreneur, it’s an exciting moment when you receive a term sheet from a venture capital fund for your company’s first preferred stock financing round. Excitement aside, it’s important to digest, understand and negotiate the key provisions of the term sheet. It can be overwhelming to understand what’s key when you haven’t negotiated numerous term sheets, but it’s vital to stay focused and diligent as many of these terms can have a lasting impact on your company, even if the term sheet is only a page or two. This is where trusted advisors – like lawyers – come in handy.