We’re fluent in startup finance. Now you can be too.

Learn more about common financial (and startup) terms here. To learn more about Pilot, fill out the form below.

Oops! Something went wrong while submitting the form.
Term sheet

What is a term sheet?

A term sheet is a non-binding agreement that outlines the basic terms and conditions under which an investment will be made. It acts as a template to develop more detailed legal documents.

A term sheet usually includes details about the ownership (equity) stakes to be given to the investor, the type of investment (equity, debt, convertible note, etc.), investor rights, and any conditions precedent to the investment. Though term sheets are non-binding, they often serve as the foundation for the legal documents that formalize the investment. It's crucial to thoroughly understand the terms outlined in a term sheet before moving forward, as these terms will shape the nature of the investor's relationship with the company.

Need help with other finance or startup questions?

Pilot provides bookkeeping, CFO, and tax services for literally thousands of startups and growing businesses. We've successfully processed over 10 million transactions for our customers and have unparalleled expertise when it comes to helping businesses succeed.

We're the largest startup-focused accounting firm in the United States, and we'd love to help you. To talk to an expert on our team and find out what Pilot can do for you, please click "Talk to an Expert" below, or email us at info@pilot.com.

See what Pilot can do for you

Get the peace of mind that comes from partnering with our experienced finance team.

Oops! Something went wrong while submitting the form.