Term Sheet
A short, mostly non-binding document that lays out the key terms of an investment: valuation, amount, share type, board rights, and protective provisions, before the full legal paperwork.
Why it matters
The term sheet is where the real negotiation happens; the long-form documents mostly formalize it. Learning to read one, especially the terms beyond valuation, is one of the highest-leverage skills a founder can build.
For example
The lead sends a two-page term sheet: 6 crore at a 24 crore pre-money, 1x non-participating preference, one board seat, and a 12 percent option pool.
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Also in Starting Up
See how founders actually handle this on Raising your first round, part of the Starting Up hub.
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