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Definition

What is term sheet?

A term sheet is a short, mostly non-binding document setting out the key terms of an investment — valuation, amount, board seats, investor rights — before the full legal documents are drafted.

Some clauses, such as confidentiality and exclusivity, are usually binding. Signing a term sheet typically starts due diligence and drafting of the definitive agreements.

General information, not legal, tax or investment advice.

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