What Startup Founders Need To Know About Term Sheets From Sophisticated Angel Investors & VC’s
A startup’s receiving its first term sheet is generally an important early milestone. And while investor term sheets are not generic, they are designed to protect the investors’ investment – not the company. So it is not uncommon for founders and sophisticated investors to diverge on what a deal should look like.
Because term sheets are largely non-binding, the investment occurs only if and when the parties agree on definitive deal documents. Those documents are supposed to reflect with detail the term shee..