Term sheet

Also called: termsheet, terms, offer

A short document that lays out the main terms of a proposed investment, such as the amount, the valuation and the investor's rights. Most of it is usually not legally binding. It is the starting point for the final contracts.

For example: After several meetings, an investor sends you a two-page term sheet. You review it with a lawyer before signing, and the full legal documents follow.

Connects to 7

Valuation Concept
Due diligence Concept
Series A Concept
Letter of intent Concept
Lead investor Concept
Liquidation preference Concept
Board of directors Concept

This glossary is plain-language orientation, not legal or financial advice. Before you decide on a company structure, a contract, taxes or a fundraising deal, talk with a lawyer or an accountant.