Annotated Sample Venture Capital Term Sheet

From the Practising Law Institute:

"For any readers who might not know a thing about venture capital, it 'is money provided by professionals who invest alongside management in young, rapidly growing companies that have the potential to develop into significant economic contributors.' And a term sheet is more or less a letter of intent for private equity -- a non-binding summary of the principal points that will be memorialized in greater detail in a subsequent Stock Purchase Agreement...[This] sample term sheet for a Series "A" Preferred Stock Financing...'is the work product of a coalition of attorneys who specialize in venture capital financings, working under the auspices of the National Venture Capital Association.'"