Startup Seed Term Sheet Important Terms You Must Understand

The Startup Seed Term Sheet is one of the documents you need to prepare if you are making investments. It is also known as an investment prospectus. It is a document that explains your startup’s information, the capital you have, and the terms of payment for your investors. If you are working with private funding, you need to have this document before approaching an angel investor or any group of venture capitalists for a round of financing. This document is the key to getting capital for your business.

There are some specific terms that you should be aware of while preparing this document. You must include your team’s and your target market’s full name, address, email address, and phone number. You should also put their annual income and how much they make in one line item. You should also put their total expenses and their operating expenses on a line item for each month of the operation and put their total assets in the line item.