Term Sheet and Key Legal Provisions in Fund Raising.

Key Terms in a Term Sheet.

Due Diligence and Warranties

Exit Strategy and Liquidity Provisions

Governance and Control

A Term Sheet serves as a foundational document in fundraising and mergers & acquisitions (M&A) transactions outlining the core terms and conditions of the deal. While not legally binding in most cases it acts as a roadmap for negotiating the final agreement. Key provisions typically cover investment amounts company valuation ownership stakes and investor rights such as liquidation preferences or voting control. Additionally the term sheet sets expectations for the due diligence process where investors examine the company's financial health and risks. It also outlines the potential exit strategy.