All that you need to know about the term sheet for approaching investors

Quick Summary:

The term sheet, sometimes referred to as the letter of intent or memorandum of understanding, is a preliminary document containing a summary of key terms agreed between parties to be used as a basis for preparing definitive agreements.

Ensure parties are negotiating with the same valuation metrics in mind (whether pre-money, post-money, or on a fully diluted basis) and look out for provisions which allow investors to adjust the share price in their favour or otherwise be compensated for any changes to the pre-agreed valuation of the company.

The main definitive agreements based on the term sheet for a series funding round will usually be the share subscription agreement and the shareholders’ agreement, from which other transaction documents may follow.

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Article Details

Author / Journalist: Hazel Ho

Category: StartupsTechnology

Markets: Singapore

Topics: Law Legal Legal Community Legal tech

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-11-08 @ 02:00:56 (11 hours ago)

News Timezone: GMT +8:00

News Source URL: e27.co

Language: English

Article Length: 1449 words

Reading Time: 9 minutes read

Sentences: 1 lines

Sentence Length: 1449 words per sentence (average)

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Copyright Owner: © e27

News ID: 23466402

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Main Topics: StartupsTechnology

Official Website: e27.co

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