Important Terms in a Term Sheet


What is a Term Sheet?

A term sheet is a non-binding document that keeps track of the terms and conditions of an investment. In this video, we summarize and explain some of the important terms in a term sheet.


What are the Important Terms in a Term Sheet?

  • Liquidation Preference - A term that ensures investors will get a certain amount of money back before the founders upon liquidation

  • Anti-Dilution Rights - Rights that protect investors from dilution in the event of a down-round

  • Control - Term that determines how much control an investor has over the company (e.g. investor's right to fire the founders) 

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