Term Sheet Template

Description
Term sheets outline who is entitled to what in monetary terms, and what each party can do legally in the frame of the company.

The terms stated in the term sheet highlight the conditions of an investment. They will explain things like the price per share, the valuation of the company, the economic rights of the new shares etc.

In general, a term sheet is non-binding. It's principal purpose is to act as a blueprint for the legal documents to follow that are formal and legally binding. Lawyers will draft these. The term sheet usually acts as an agreement of confidentiality and your way of stating that you'll not negotiate with other investors in the same time period.

*Originally posted on BVCA wesbite*