Term sheet template (angel or venture capital investors): Ontario startups
If you think of the ongoing relationship between you and an investor as a marriage, then you can regard the term sheet as the prenuptial agreement, whether the term sheet be with an angel investor or a venture capital investor (VC).
The purpose of the term sheet
The term sheet is the document that outlines the terms by which an investor (angel or venture capital investor) will make a financial investment in your company. Term sheets tend to consist of three sections: funding, corporate governance and liquidation. (For more details, please see Understanding a term sheet.)
MaRS has created a sample template of a term sheet to help streamline business for investors, founders and their respective legal advisors. While MaRS makes this document available for educational purposes and to facilitate the negotiation of terms between investors and startups, the template is yours to use at your own risk. Please see the disclaimer below.
Sample term sheet template
This sample legal document has been made available by MaRS Discovery District for informational purposes only and does not constitute advertising, a solicitation, or legal advice. Neither the transmission of this sample legal document nor the transmission of any information contained in this website is intended to create, and receipt hereof or thereof does not constitute formation of, a lawyer-client relationship. Internet subscribers and online readers should not rely upon this sample legal document or the information contained in this website for any purpose without seeking legal advice from a qualified lawyer practicing in the reader’s province.
The information contained in this website is provided only as general information and may or may not reflect the most current legal developments; accordingly, information on this website is not promised or guaranteed to be correct or complete. MaRS Discovery District expressly disclaims all liability in respect to actions taken or not taken based on any or all the contents of this website.
- Limited partnership agreement: Sample template
- General partnership agreement: Sample template
- Intellectual property (IP) assignment agreement: Sample template for Ontario startups
- Angel or seed investing: Angel term sheets for startups
- How to create a pitch deck for investors