The Term Sheet

If an investor offers to sign a term sheet with your company, you can be sure that they are interested in investing in your company. However, a term sheet is essentially just that—an expression of interest. It is by no means a done deal! Specifically, a term sheet is a preliminary offer to invest in your company and summarizes the size and conditions of the investment as expected by the investor.

Before signing a term sheet, you should educate yourself on exactly what a term sheet is and what to expect while negotiating it. You are encouraged to view the video clips and carefully review the valuable resources contributed by Springboard's expert advisors to better understand what to expect. In addition, you should feel free to discuss the term sheet negotiation process with your attorney and other trusted advisors.

Key Attributes of the Term Sheet (3:19)

Attorney Mary Hildebrand discusses key attributes of the term sheet and emphasizes that it is simply a framework for moving forward in a deal.

 

The Term Sheet and The Capitalization Table (3:05)

Springboard alumna Gail Goodman and investor Marcia Hooper explain the differences between the term sheet and the capitalization table and emphasize the importance of understanding the capitalization table.

Other Approaches to Valuation (2:33)

Attorney Mary Hildebrand reviews three bases for approaching valuation: market, income, and assets.