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What is a Term Sheet? Key Considerations in Investor Agreements

If you are a startup founder raising funds at the pre-seed, seed, or Series A stage, chances are you will come across a term sheet. This document signals that you are on the verge of securing investment—a major milestone for your company. Both you and the investor are excited, but before you sign anything binding, you need a preliminary agreement that outlines the framework of the deal. That’s exactly what a term sheet provides.