Startup Law
Term Sheet
A non-binding document summarising the key commercial terms of a proposed investment, before detailed definitive legal agreements are drafted.
A term sheet sets out the headline terms — valuation, amount being invested, key rights of the investor, and any conditions — that both sides agree to work towards, before lawyers draft the fully binding investment and shareholders' agreements.
While most provisions in a term sheet are non-binding, certain clauses — like exclusivity and confidentiality — are typically expressly made binding even at this early stage.
Need a Startup lawyer?
Browse Startup Lawyers