Term Sheet
Definition
A non-binding document outlining the key terms of an investment deal. It covers valuation, investment amount, board seats, and investor rights before lawyers draft final documents.
Related terms in Funding
All 100 terms →Bootstrapping
Building a company using only personal savings and revenue—no outside investment. Bootstrapped founders maintain full control but grow more slowly.
Angel Investor
A wealthy individual who invests their own money in early-stage startups, typically writing checks from $10K to $250K. Angels often provide mentorship alongside capital.
Venture Capital (VC)
Professional investors who manage funds from institutions and wealthy individuals, investing in high-growth startups. VCs typically invest larger amounts and expect significant returns.
Seed Round
The first significant round of funding, typically $500K to $3M, used to prove the concept works and find initial product-market fit.
Series A
The first major institutional round, typically $5M to $20M. At this stage, you should have proven the business model and be ready to scale.