Konubinix' opinionated web of thoughts

Term Sheet

Fleeting

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

https://www.investopedia.com/terms/t/termsheet.asp

term sheet should cover the significant aspects of a deal without detailing every minor contingency covered by a binding contract

https://www.investopedia.com/terms/t/termsheet.asp

ensuring that the parties involved in a business transaction agree on most major aspects

https://www.investopedia.com/terms/t/termsheet.asp


  1. term sheet is a nonbinding agreement that shows the basic terms and conditions of an investment

    https://www.investopedia.com/terms/t/termsheet.asp

    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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  2. term sheet serves as a template and basis for more detailed, legally binding documents

    https://www.investopedia.com/terms/t/termsheet.asp

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  3. reduces the likelihood of a misunderstanding or unnecessary dispute

    https://www.investopedia.com/terms/t/termsheet.asp

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