What are some examples of term sheets?
Term sheets are documents outlining the terms of an investment. Common examples include venture capital term sheets, real estate term sheets, and merger/acquisition term sheets.
Can you explain what a venture capital term sheet includes?
Sure! A venture capital term sheet typically includes details like valuation, investment amount, equity stake, board composition, and liquidation preferences.
What is the purpose of a term sheet?
The purpose of a term sheet is to outline the key terms and conditions of an investment agreement before finalizing the legal documents.
Are there any common pitfalls to avoid in term sheets?
Yes, common pitfalls include vague language, not addressing exit strategies, and failing to clarify the rights of investors versus founders.
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