What’s Really Happening in VC Deals? HSBC’s 2025 Term Sheet Guide Lifts the Lid

Navigating venture capital can feel like a high-stakes game with unclear rules, especially when it comes to term sheets. That’s why HSBC Innovation Banking – sponsor of Turing Fest’s Investors & Founder Happy Hour – is back with its 2025 Venture Capital Term Sheet Guide, a must-read for founders and early stage investors.

Now in its third edition, this guide draws insights from 588 anonymised UK equity term sheets, covering nearly a third of all UK VC deals over £500k in 2024. That’s serious data firepower- sourced from 27 leading law firms who live and breathe venture finance.

So what’s inside?

You’ll find real trends, real numbers, and expert commentary that demystifies the term sheet negotiation process – whether you’re raising your first Seed round or scaling into Series C and beyond.

🔍 What the Data Tells Us

The guide highlights some major shifts in the venture landscape:

Seed and Series A are booming:

Early-stage funding now makes up 75% of all UK term sheets, a sharp increase from 58% in 2021. Early-stage investors- especially international ones- are moving fast, often on less structured, more founder-friendly terms.

Growth-stage funding is tightening:

Later rounds come with lower average valuations and more investor protections, as VCs become more cautious and focus on mature, defensible businesses.

AI is leading the way:

AI accounted for 38% of all deals in 2024, with fintech and life sciences also dominating. The appetite for disruptive tech shows no signs of slowing down.

The scale-up gap persists:

While the majority of Seed and Series A deals were led by UK investors, a staggering 80% of late-stage rounds (Series C+, £30m+) were driven by international capital—up from 51% in 2023.

Why Founders Should Read This

Too often, founders go into funding rounds without knowing what’s “market standard.” This guide helps level the playing field. Whether you’re unsure about liquidation preferences, investor rights, or just want to feel more confident at the negotiation table, this guide gives you the transparency you need.

It also includes:

Plain-language breakdowns of complex legal terms

Negotiation tips to help you secure better outcomes

Insights from founders, VCs, and legal experts who’ve been through it all

A Tool for Smarter, Fairer Deals

It’s a tool for smarter, fairer fundraising. If you’re a founder, investor, or advisor working with startups, this is your backstage pass to how VC deals are actually getting done.

Download the full guide here.

Join Glen Waters, Head of the Early-Stage Tech & Life Sciences team, HSBC Innovation Bank for a deep dive with Keith Bradbury, Co-Founder at Ember at Lunch & Learn with HSBC IB: Trends in Term Sheets taking place at 12:40pm on May 8th.

HSBC Innovation Banking is also a proud sponsor of the Investors & Founder Happy Hour and the Investor Dinner at Turing Fest 2025.

Check out the INVEST track, INVEST speakers and book your tickets now.