Term Sheet
A Term Sheet is a document that details the terms and conditions of the financing for an investment opportunity between an investor and a startup. It is usually non-binding. Note that in early stages of financing – Friends & Family and Seed – the company drafts the term sheet. But typically, once you get to a Series A round, the investors will draft the term sheet, or letter of intent (LOI).
Example:
We just sent out our Seed term sheet to a handful of interested investors. Hopefully one of them will lead our round.
More Information:
Tired of reading? Watch a video of Kevin explaining basic startup building blocks, such as equity, on our blog.
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