Seed Enterprise Investment Scheme (SEIS) Model Term Sheet

Description
A term sheet (also known as head of terms in the UK) states the terms of a deal already agreed between parties. These terms are agreed and signed as a pre-commitment of the investor. The term sheet generally covers just the deal.

All profitable transactions should begin with a good term sheet. Term sheets are not used to create a legally binding contract except for cases of confidentiality. Yet you should pay attention to the fact that it can be hard to get the other party to change their view on a point once it is already in writing, thus affecting your bargaining power.

Any large investments usually have angels or VCs to create their own term sheet, although you should always try to negotiate on their preferred terms.