The uber-blog Found|Read (really, I love their stuff) posted a great overview of the language used in VC termsheets a little while ago. A few of my friends recently went through the funding process and the same questions seem to pop up again and again: What’s the exact different between pre and post money valuations? What is a liquidation preference (and why should I avoid it)? And so on, and so on.

Now - here are the answers: F|R’s Crib Sheet.