A Term Sheet is a document that details the terms and conditions of the financing for an investment opportunity between an investor and a startup. It is usually non-binding. Note that in early stages of financing – Friends & Family and Seed – the company drafts the term sheet. But typically, once you get to a Series A round, the investors will draft the term sheet, or letter of intent (LOI).Example:
We just sent out our Seed term sheet to a handful of interested investors. Hopefully one of them will lead our round.Tired of reading? Watch a video of Kevin explaining basic startup building blocks, such as equity, on our blog.
Who are these people?
Vela Wood is a Texas based, startup focused law firm with a local feel and a global impact. VW has counseled thousands of small businesses and startups and facilitated nearly $500M in early-stage financings. For more information please visit our website.