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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