A term sheet is an agreement between your startup and an investor. It outlines to conditions of investment and is generally non-binding. This is a necessary document as it outlines the conditions for investing in your startup and what investors will get in return for giving you funding.
A term sheet is a blueprint that outlines the conditions of investing in your startup for investors. It covers areas such as the equity investors will receive in exchange for providing you with funding. What role they’ll have in your company once they make an investment, and plenty more.
Here is the kinds of things a term sheet typically includes:
- Identifies each party
- Valuation and percentage of ownership
- Information regarding basic assets
- Purchase price
- Contingency guidelines
- Investor rights
And much more.
This isn’t a legally binding document but it does give you a blueprint for securing investing and let’s face it, it will show any potential investors that you’re serious about your business and have thought things through. This will give them much more confidence to invest in your startup and give you that little edge over any other startups that have been complacent in getting such documentation created.
You can get your term sheet today for just £250.