• definition

What is a “Term sheet” ?

A Term 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.

By | 2018-06-03T11:00:37+00:00 October 15th, 2016|Legal Definitions|0 Comments

About the Author:

Yana Sheinberg
Yana is a third-year student in the joint program of Law and Government at the IDC Herzliya. In her free time, Yana enjoys sports, reading and crafting.