Investment term sheet.
Capture proposed investment terms and identify which provisions are intended to be binding.
The right support.
With the details in view.
A term sheet captures the main points of a proposed investment before the definitive documents are negotiated. It helps founders and investors identify valuation, instrument, governance and closing expectations early. Each clause should make its intended binding status clear; a term sheet does not itself complete funding, due diligence or share issuance.
First, establish what applies
Documents should reflect the transaction, parties, location and applicable law. Drafting, legal advice, disputes, execution, stamping and registration need appropriate professional review; a template alone does not complete those steps.
What the scoped work can cover
- Investment term sheet draft
- Commercial issues and binding-status notes
- Definitive-document and diligence checklist
A useful brief.
A stronger starting point.
Bring these inputs and existing records to the drafting discussion. They help turn a standard format into a document that reflects your situation.
- 01
Company details, articles and existing investor rights
- 02
Current cap table and proposed funding amount
- 03
Proposed valuation and investment instrument
- 04
Governance, liquidation, transfer and exit proposals
- 05
Due diligence, exclusivity and closing assumptions
Share sensitive records only through an agreed secure channel after the engagement is confirmed. Do not send passwords, OTPs or signing keys.
One step.
Then the next.
A clear sequence, with room to resolve the details that are specific to your business.
- 01
Set transaction assumptions
Confirm the investment instrument, amount and proposed ownership effect.
- 02
Review key economics
Work through valuation, dilution and priority rights against the cap table.
- 03
Mark binding provisions
Separate negotiation points from intended confidentiality, exclusivity or other commitments.
- 04
Prepare for definitive documents
Record unresolved issues, diligence conditions and implementation workstreams.
Scope, fees and timing are agreed after review. Document readiness, professional review and any authority queries affect the schedule. Statutory charges, testing, execution and other third-party costs are identified where relevant.
Keep the next
responsibility in view.
Track any exclusivity or confidentiality obligations and carry agreed economics consistently into the definitive transaction documents.
Explore obligations beyond your core businessGood questions.
Useful answers.
01Is a term sheet always non-binding?+
No. Wording and context matter, and selected provisions may be intended to bind even when investment terms remain conditional.
02Does valuation alone determine ownership?+
Not necessarily. Instruments, existing rights, options and the agreed valuation basis can affect the final cap table.
03Is due diligence included?+
The term sheet can specify its scope and conditions. Conducting financial, tax or legal diligence is a separate engagement.