A list of the material terms of a business or funding agreement. A term sheet typically appears in a bulleted format. After term sheet has been “executed” it guides legal counsel in the development of a proposed “final agreement”. It is subsequently used as a guide to negotiate the final terms to be in the signed agreement.
Term sheets are non-binding agreements which describe the basic terms and conditions of an investment deal. The term sheet is essentially the template used to develop a more detailed, formal investment agreement.