How do I understand term sheets and dilution?

You are running a raise while the language of it floats over your head. That is uncomfortable, but it is also normal. Founders are not born knowing this. The people across the table learned it the same way you will: by asking plain questions until the fog clears. Strip the jargon down. Valuation is what your company is agreed to be worth. Dilution is the slice of ownership you give up for the money. A term sheet is just the list of promises attached to that deal. When a clause confuses you, ask directly: what does this mean for my control, my money, and my downside? Anyone worth partnering with will answer. Do one concrete thing this week. Take your latest term sheet to a startup lawyer or a founder who has raised before, and have them read it line by line with you. Pay for the hour if you must. Signing something you do not understand is the real risk here, and it is fully avoidable.