VentureDocs – Term Sheet

A clear, commercially balanced term sheet designed to frame investment discussions and set the
economic and control terms of a proposed funding round. The term sheet establishes alignment
early, reduces ambiguity, and provides a practical reference point for legal documentation.

Term sheets play a central role in equity and convertible financings by defining valuation,
investment amount, ownership outcomes, and key investor rights before time and cost are incurred
on full legal drafting. A well-structured term sheet helps keep negotiations focused on the
points that matter.

What the term sheet covers

• Investment structure and instrument (equity, preference shares, or convertible)
• Pre-money and post-money valuation, pricing, and dilution
• Use of proceeds and funding conditions
• Governance, control rights, and investor protections
• Economic terms such as liquidation preference and conversion mechanics

How it is used

• Anchoring valuation and pricing discussions with investors
• Aligning expectations ahead of legal documentation
• Supporting convertible loan note or SAFE negotiations
• Providing a clear basis for solicitors to draft definitive agreements

The term sheet is drafted in plain, commercial language, with clear explanations of key terms,
allowing founders and investors to engage constructively without unnecessary legal complexity
at an early stage.

Outcome: A disciplined, investor-ready term sheet that accelerates negotiations,
reduces legal friction, and improves the likelihood of a successful close.