Term Sheet - Investment
The Term Sheet Investment summarises the principal terms of a proposed investment by the Investor into the Company.
Last updated October 23, 2025
Suitable for Australia
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Frequently asked questions
Use this Term Sheet Investment if:
- You are seeking potential investment or looking to sell your business.
- You are making negotiations with potential investors.
What does this Term Sheet Investment cover?
- Details of the contract including names of both parties, contract investment and summary specifics.
- Details of legal terms including investment, class of shares, employee share scheme, cap table, timetable, confidentiality, exclusivity and enforceability clauses.
- Key provisions in shareholders agreement such as details of appointment of director, drag along options, tag along options, vesting options and bad leaver buy back rights.
Further information
View Sample Term Sheet - Investment
The Legal Risk Score of a Term Sheet - Investment Template is Medium
Our legal team have marked this document as medium risk considering:
- The document includes a clause that requires the company to negotiate exclusively with one investor for a specified period, which might limit the company's ability to explore potentially better investment opportunities during that time.
- There is a provision for the assignment of all intellectual property related to the business to the company, which could significantly impact the rights and future control of the founders over their own innovations.
- The document outlines that the investor will conduct further due diligence post-agreement, giving the investor a chance to back out based on new findings, which introduces uncertainty into the completion of the transaction.
Users familiar with investment agreements might find this document within expected risk parameters, but should remain cautious of the exclusive negotiation rights and the potential broad transfer of intellectual property rights.
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