What is exclusivity in a term sheet?

Exclusivity prevents founders from negotiating with other investors during an agreed period (e.g. 30–60 days). It is binding and a breach may give rise to a claim for damages.

How detailed should a term sheet be?

A term sheet should be concise (2–5 pages) and capture the key economic and governance terms. Legal detail is the subject of the final investment agreement.

How long does it take to negotiate a term sheet?

Typically 1–4 weeks from the first meeting to the term sheet signing. It depends on the complexity of the terms and the number of stakeholders (co-founders, existing investors).

What is a cap table and why is it important for a term sheet?

A cap table (capitalisation table) shows the ownership structure of the company before and after the investment. It is essential for calculating anti-dilution clauses, pro-rata rights and liquidation preferences.

Founders & CFOs Term sheet

Term sheet for Founders & CFOs

A term sheet is the first written document capturing the key terms of an investment round — valuation, equity percentage, anti-dilution provisions, and investor rights. While not fully binding, it frames the binding documents that follow and speeds up the entire process. zipzipdoc generates it in 60 seconds.

Start free Document guide

GDPR compliant · EU-hosted

Founders & CFOs

A startup founder needs dozens of legal documents — from a founder agreement through SAFE investments to NDAs with potential partners. zipzipdoc generates these documents from standardised templates and enables fast closure without expensive hourly lawyer fees.

Term sheet

A term sheet covers valuation, investment amount, share types, anti-dilution, investor rights, board composition and exit. AI generates it quickly in language that non-lawyers can understand.

When to use a Term sheet

Before starting legal due diligence in an investment process
To confirm investor interest before preparing the final agreement
When negotiating key terms between founders and investors
As the basis for M&A negotiations

What you get

Valuation and investment amount
Share types and rights
Board and governance
Exclusivity and expiry

Benefits for Founders & CFOs

SAFE and founder agreement via AI
Quick NDA for investors
Audit trail for due diligence

FAQ

Questions about Term sheet

Most of the term sheet is non-binding — it expresses intent, not obligation. Only clauses explicitly marked as binding (typically exclusivity and confidentiality) are enforceable.

How does zipzipdoc compare to alternatives?

See detailed comparisons with popular e-signature tools.

zipzipdoc vs DocuSign zipzipdoc vs Adobe Sign zipzipdoc vs Dropbox Sign zipzipdoc vs PandaDoc

Back to Founders & CFOs · Guide: Term sheet

Try Term sheet for Founders & CFOs

14 days free, no card.

Start free Pricing

No credit card · 14 days free · Cancel anytime