Term Sheet
Intermediate Level
Bengaluru
Entrepreneurship
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Definition
A non-binding document outlining the basic terms of a proposed investment in a startup.
Detailed Explanation
Term sheet includes valuation, investment amount, equity stake, board seats, liquidation preferences, and anti-dilution provisions. It's the basis for detailed legal documentation.
Example
After 3 pitch meetings, a VC sends a term sheet offering ₹5 crore for 15% equity.
Local Context (Bengaluru)
Understanding term sheets is crucial for Bengaluru founders negotiating with investors.
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