- External reference: https://www.investopedia.com/terms/t/termsheet.asp
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
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.
term sheet serves as a template and basis for more detailed, legally binding documents
reduces the likelihood of a misunderstanding or unnecessary dispute