Glossary
Glossary
Term Sheet
A non-binding document outlining the key economic and governance terms of an investment.
A term sheet summarizes the proposed terms of an investment — valuation, investment amount, equity percentage, board seats, liquidation preferences, anti-dilution provisions, and other key conditions. While typically non-binding (except confidentiality and exclusivity clauses), the term sheet sets the framework for final legal documents. Founders should understand standard term sheet clauses before signing to avoid unfavorable long-term governance or economic outcomes.