In this episode, we unpack key insights from a 2025 guide to VC term sheets, focusing on the evolving dynamics of investor participation across startup funding stages and the essential role of capitalization tables in equity structuring.
We begin by analyzing the changing investor landscape—how different types of investors dominate at different funding rounds. In early seed stages, angels, EIS schemes, and seed-stage VCs play a leading role, while Series A and beyond see increasing involvement from larger VC firms, family offices, and corporate venture capital arms. We highlight how VC (LPs) maintain a strong presence from seed through Series A and how investor diversity grows as startups mature.
The episode also dives into the purpose and structure of capitalization tables—critical tools for tracking equity distribution among founders, investors, and employees. We discuss why these tables matter during negotiations, exits, and future fundraising rounds, and how they evolve with each investment stage.
We explore how this type of guide supports founders and investors alike in making informed decisions—whether it's choosing the right investors, understanding dilution, or negotiating key term sheet clauses. Even with limited text, the visual data offers a rich lens into how venture capital evolves with a startup's growth, and how founders can strategically navigate that journey. This is a must-listen for anyone raising capital or advising startups in 2025.
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