Last updated on Jan 27, 2024

How can you design a term sheet to ensure fairness for both parties?

Powered by AI and the LinkedIn community

A term sheet is a document that outlines the key terms and conditions of a venture capital (VC) investment. It is not a legally binding contract, but it serves as a basis for negotiation and due diligence between the founders and the investors. A well-designed term sheet can help both parties achieve a fair and balanced deal, while avoiding potential conflicts and misunderstandings down the road. In this article, you will learn how to design a term sheet that ensures fairness for both parties, by considering the following aspects: