Term Sheet

A term sheet is a document that outlines the key terms and conditions of a potential investment or agreement between parties, such as investors and a business. It serves as a blueprint for future negotiations, covering important aspects like valuation, amount of funding, ownership percentages, rights, and obligations. While not yet a legally binding contract for everything, it provides a clear understanding of the deal’s main points. Essentially, a term sheet helps both parties agree on essential terms before drafting detailed, binding documents.