How do founders actually use pre-money vs post-money on the term sheet?
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Most founders I talk to agree on a number before they agree on which number it is. You say 5M, the investor writes 5M post, and your 1M round just cost you 20 percent instead of 16.7. Same headline, different cap table.
What I check on every term sheet: is the valuation pre or post, does the option pool sit before or after the money, and what does the founder side own on the day of close. If the pool is promised out of pre, that dilution is yours, not theirs.
I run the numbers on Round Funded before the call so the conversation is about terms, not arithmetic.
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The calculator I use for this: https://www.roundfunded.com/en/tools/pre-money-and-post-money-valuation-calculator
Enter the round size and the valuation, flip pre to post, and the founder ownership number moves in front of you. Worth doing before the call, not after.