What is a term sheet?

Fast Answer:

A term sheet is a document outlining the key terms and conditions of an investment agreement between your startup and a prospective investor. It serves as a framework for negotiations and outlines details such as the amount of investment, the level of equity offered, the valuation of the company, and other relevant terms and conditions. The agreement between the two parties will eventually be more detailed and formalized in a contract, but the term sheet serves as an initial blueprint for the deal.