Term Sheet
Fleeting- External reference: https://www.investopedia.com/terms/t/termsheet.asp
Non binding agreement1 that gives an overview of what the actual engagements will look like2, so that the parties at stake are quite confident they won’t dispute3 the future engagement.
Term sheets are most often associated with start-ups. Entrepreneurs find that this document is crucial to attracting investors, such as venture capitalists (VC) with capital to fund enterprises
term sheet should cover the significant aspects of a deal without detailing every minor contingency covered by a binding contract
ensuring that the parties involved in a business transaction agree on most major aspects
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term sheet is a nonbinding agreement that shows the basic terms and conditions of an investment
↩︎Equity is the value difference between what you owe on something, and what that something is worth. A home, or a car, or a business.
— https://www.gitomer.com/is-it-net-worth-or-equity-the-answer-is-both/
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↩︎term sheet serves as a template and basis for more detailed, legally binding documents
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↩︎reduces the likelihood of a misunderstanding or unnecessary dispute