Definition
A term sheet is the short document that says how a round will work: valuation, cheque size, option pool, liquidation preference, board seats, and the rights investors care about. It is usually not binding (except exclusivity and confidentiality), but it is the argument you will later spend legal fees turning into definitive documents.
In the room
How the word shows up in a real conversation.
A seed term sheet: ₹3 crore at a ₹12 crore post-money, 10% option pool, 1× non-participating preference, one investor board seat. The founder negotiates the pool and the board before anyone drafts the SHA.
Common mistake
Fighting only the valuation and ignoring control terms. A “high” price with a participating preference and a blocked board can be the worse deal.
See also
Cap table
The ledger of who owns the company: shares, options, and what converts later.
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SAFE
A YC-style agreement to invest now and receive equity later, usually at a priced round.
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Series A
The first priced institutional round, usually after some repeatable traction.
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Pre-money valuation
Company's valuation before receiving investment funding, used to determine the price per share for investors.
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