Overview

A term sheet is a non-binding document outlining the basic terms and conditions under which an investment will be made. Understanding the nuances of a term sheet is crucial for both venture capitalists and founders, as it sets the groundwork for future governance, decision-making, and financial outcomes. This section explores essential financial and governance terms within term sheets, illustrated through practical examples and case studies.

Objectives

By the end of this section, you should:

• Understand key financial and governance terms in venture capital term sheets.
• Learn how these terms impact both investors and founders.
• Be able to calculate and interpret relevant financial metrics in term sheets.
• Analyse real-world case studies to see how term sheet terms play out in actual deals.