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Term Sheet

A document that includes the basic terms of a company’s fundraising round (or any investment). Once signed, it indicates that the investor and the company intend to move forward to complete the transaction and stipulates the significant economic or corporate governance terms related to the investment. A Term Sheet typically comes with a Non-Shopping clause that allows the investors to conclude Definitive Agreements, such as SPA (Stock Purchase Agreements), for the investment to close within a period of 4-8 weeks.

A document that includes the basic terms of a company’s fundraising round (or any investment). Once signed, it indicates that the investor and the company intend to move forward to complete the transaction and stipulates the significant economic or corporate governance terms related to the investment. A Term Sheet typically comes with a Non-Shopping clause that allows the investors to conclude Definitive Agreements, such as SPA (Stock Purchase Agreements), for the investment to close within a period of 4-8 weeks.