Term Sheet
Definition
A non-binding document outlining the key terms and conditions of a proposed investment, including valuation, investment amount, equity stake, board rights, liquidation preferences, anti-dilution provisions, and other protective clauses. The term sheet forms the basis for negotiation before definitive legal agreements are drafted.
Related Terms
Related FAQ
What is a no-shop clause and how long is it typical?
A no-shop clause prevents the company from actively seeking alternative buyers or investors for a defined period (typically 30-60 days), giving the lead investor time to conduct due diligence.
Read full answer →What is a term sheet and what are its key terms?
A term sheet is a non-binding agreement outlining the key financial and legal terms of an investment — including valuation, investment amount, liquidation preference, board rights, and anti-dilution.
Read full answer →What is a term sheet and what does it commit both parties to?
A term sheet outlines investment terms (valuation, amount, rights, protections) and is usually non-binding except for exclusivity, fee payment, and confidentiality clauses.
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