term sheet
Preliminary agreement document
A term sheet is a document outlining the key terms of a proposed business deal, particularly in venture capital and startup financing.
It covers essentials like valuation, investment amount, ownership stakes, and voting rights.
Term sheets are typically non-binding—a framework for negotiation rather than a final contract: We received a term sheet but haven't closed the round yet.
Grammatical or legal units
- provisionsStockpiled food and supplies
- sectionsDivided portions of something
- termsConditions of an agreement
- conditionsPrevailing state of affairs
covenants · representations · warranties · exhibits · schedules · definitions · preamble · recitals
Negotiating mutually acceptable terms
- counterofferAlternative terms proposed back
- redlineEditorial revision marking
- markupAdded percentage for profit
- concessionsThings granted or yielded
Minimum for valid proceedings
- fiduciaryAgent bound by loyalty
- decision-makingProcess of choosing actions
- supermajorityVote exceeding simple majority
clauses
Grammatical or legal units
- provisionsStockpiled food and supplies
- sectionsDivided portions of something
- termsConditions of an agreement
conditions · covenants · representations · warranties · exhibits · schedules · definitions · preamble · recitals · amendments
bargaining
Negotiating mutually acceptable terms
- counterofferAlternative terms proposed back
- redlineEditorial revision marking
- markupAdded percentage for profit
concessions · leverage · walk-away · deadlock · posturing · handshake
quorum
Minimum for valid proceedings
- fiduciaryAgent bound by loyalty
- decision-makingProcess of choosing actions
- supermajorityVote exceeding simple majority
- Dealmakingdeal, negotiator, bargaining, offer, counteroffer
- negotiationsbargaining, offer, counteroffer, counter offer, compromise
- corporate financecost of capital, investment, capital markets, NPV, debt financing
- business documentsarticles of incorporation, invoice, charter, bylaws, contract
- business saleacquisition, buyout, merger, stock sale, purchase agreement
- corporate dealingsmerger, acquisition, joint venture, subsidiary, parent company
term sheetbinding agreement
Enforceable mutual commitment
loan agreement · purchase agreement · articles of incorporation