Term Sheets for Startups – Everything You Need To Know

Term sheets are documents (often) drafted by attorneys, which contain the key provisions that startups and investors agree to when striking a deal. Fundamentally, term sheets stipulate the financial obligations of each party and outline the conditions of the sale of stock to investors or the sale and purchase of a company. Critically, term sheets allow the parties to identify or predict any issues that may arise before the (potentially) wasteful commitment of time, money,…