Termsheets are formal documents that outline the key terms of an investment deal between a startup and venture capital firm. They include details such as the valuation of the startup, the amount of funding being provided, whether the VC will take board seats, and how shareholder dilution will work. Termsheets are non-binding but serve as an overview of the proposed fundraising deal before legally binding documents are drafted. A sample termsheet is then provided from firstcheque.vc as an example of the type of information typically included.

1. What are
Termsheets?
Contributor
Rachitt Shah
Venture capital Investing
Investing Startups
Startups
@offtrack-comics
You’ll learn about
What are termsheets?
What are termsheets?
Why are they used?
Why are they used?
Termsheet terms
Termsheet terms
Bonus: termsheet example!
Bonus: termsheet example!

2. That's amazing. Did you get a
chance to look at the fundraiser
firsthand?
Thank you for our last call about
explaining how VC works! One of my
friends' startups recently got funded
by some top VCs!
Mentee
Mentee
VC associate
VC associate

3. Interesting question. Different
VCs have different ways, but one
thing is constant. Term sheets.
Yes, but I had a question how are the
funds really transferred and decided?

4. Termsheets are the whole ground
of the VC ecosystem!
But what is a term sheet?

5. A term sheet is the first step
towards the actual fund transfer
from a VC to the startup.
A term sheet includes many formal
notions about the fundraise and
what the startup and the VC would
get.
Can you explain it in detail?

6. A term sheet has many important
details: What is the valuation,
would the VC take board seats, the
investors' commitment, and details
on dilution.
But what would the content of a term
sheet be?

7. Termsheets is the first step and
serves as an overview of the
fundraising. it is followed by
many more legally binding docs
But shouldn't term sheets be more
detailed?

8. I've shared a term sheet, which
would serve as a great starting
point!
This made me very curious! Can I look at
a sample term sheet?

9. Source: firstcheque.vc
Source: firstcheque.vc

10. Source: firstcheque.vc
Source: firstcheque.vc

11. Watch this space for cool
comics on Startups & VC :)
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