What�s in an Investment Term Sheet? 13 Key Terms Every Startup Founder Should Know

Ronnie25 May, 2021Business

It?s important to remember at the outset that a term sheet remains a non-binding document. Broadly speaking, the parameters for investment are set out within it, via agreed terms and conditions, and this allows any investors to make a considered decision when deciding on whether to place investment in a startup. It is, essentially, a framework from which to negotiate a final agreement, but isn?t binding on the investor and therefore doesn?t compel them to complete the investment.