Term Sheet

The Term Sheet is a non-binding document that summarizes the main conditions of a potential agreement between a company and investors during a fundraising event. It serves as a basis for discussions and negotiations prior to the signing of final agreements. This document generally includes information on the valuation of the company, the amount to be invested, the type of shares to be issued (ordinary or preferred shares), as well as the rights and obligations of investors (for example, oversight, participation in the board of directors). The Term Sheet also includes clauses relating to dilution, liquidation, and the exit of investors. Although not legally binding, it sets out the main lines of investment and prepares the ground for the drafting of formal contracts. A well-negotiated Term Sheet is essential to ensure that all parties understand the financial and legal terms before making a final commitment.

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