A term sheet is a non-binding agreement that outlines the key terms of an investment - valuation, investment amount, board seats, liquidation preferences, and anti-dilution provisions. It is the starting point for negotiation between a startup and an investor.
Definition
Understanding Term Sheet
A term sheet is a non-binding agreement that outlines the key terms of an investment - valuation, investment amount, board seats, liquidation preferences, and anti-dilution provisions. It is the starting point for negotiation between a startup and an investor.
Related Concepts
Related Terms
- Fundraising
- Cap table
- Venture capital
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