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Fundraising

Term Sheet

Also known as term sheet

A short, mostly non-binding document that lays out the key terms of an investment before the full legal paperwork is drawn up.

Example

You receive a term sheet offering ₹5 crore at a ₹20 crore pre-money valuation.

Related terms

Cap Table
A list of everyone who owns a piece of the company — founders, investors, employees with options — and how much each holds.
Valuation
How much your company is judged to be worth. 'Pre-money' is the value before new investment; 'post-money' is pre-money plus the money raised.
Liquidation Preference
A term that decides who gets paid first (and how much) if the company is sold. A "1× preference" means investors get their money back before founders see anything.

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