What is listed on a term sheet?
The term sheet contains agreements regarding the future investment round. First of all, a term sheet indicates the size of the investment, the number of shares and the type of shares involved. In addition, the purpose of the investment and the latest closing date of the investment are of course discussed. Another important point is the valuation of the company and the possibility for the investors to check this by means of a due dilligence investigation. What can also be included on the term sheet are provisions that prevent the dilution of shares.
Are you bound by a term sheet?
A term sheet does not constitute a legally binding document in its entirety. Exceptions are certain provisions in the term sheet such as confidentiality and exclusivity.
Need help with a term sheet?
If you would like support in drawing up and negotiating a workable and legally clear termsheet agreement or in the event of disputes about or termination of a joint venture agreement, please contact us.