As the tech market shakes, term sheets are changing. Here’s how

VCs are more cautious about deploying cash amid a plummet in public stock prices. Term sheets are documents that set out investment terms between startups and backers. Valuations are falling and everyone wants to avoid a downround. Liquidation preference clauses are one area where term sheets are seeing a big shift. Later-stage companies are more likely to have to barter over terms or give investors more protection when the company doesn’t perform well, says Mike Turner, partner at law firm Latham & Watkins. Early-stage firms are simply finding it harder to close deals, “but it doesn’t necessarily translate into changing deal terms apart from valuation” says Turner. Early stage companies — which are further away from public market turmoil — are finding it. . . .