A Tern Sheet is a document in which the investor presents his legal and commercial conditions for performing the investment. In most cases, the term sheet is not legally binding but indicates the investor’s intentions. The conditions outlined in the Term Sheet will often become the basis for the full investment agreement. Typically, after placing the term sheet, the parties will negotiate the terms until they reach an agreement and confirm it by signing the full investment agreement. Examples of issues included in the term sheet, are: the investment amount, preconditions for the investment, the amount and type of shares allocated to the investor, legal mechanisms for the protection of the investor, restrictions upon the future actions of the entrepreneurs and more.