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Definition A term sheet is a written summary of the proposed key terms of an investment. The terms must be negotiated and agreed upon by both the investing party and the company seeking investment. After agreement on the terms has been reached and formalized in a signed term sheet, legal documents (commonly called “long-form docs” or “final docs”) are prepared, reviewed, and executed to finalize the investment. In itself, a term sheet is not a legally binding document, but its conditions of exclusivity and confidentiality are legally binding.