a16z Managing Parter Scott Kupor’s new book, Secrets of Sand Hill Road, is a guide to engaging with and understanding VC that covers everything from terminology and term sheets to the fundraising process, governance, and more.

In this video, “The Economics of Term Sheets,” Kupor demystifies the term sheet, giving a brief tutorial for current and potential founders on how to understand the economic terms commonly used. Kupor walks us through the core definitions and concepts, elucidating what they mean as well as how to think about implications and consequences for your company of different clauses down the road.