[Skip to content](https://www.hubspot.com#main-content) [](https://www.hubspot.com/startups) - [Resources](https://www.hubspot.com/startups/resources) Show submenu for Resources - [Fundraising](https://www.hubspot.com/startups/fundraising) - [Sales & Marketing](https://www.hubspot.com/startups/sales-and-marketing) - [AI Tech & Tips](https://www.hubspot.com/startups/ai) - [Tech Stack Guide](https://www.hubspot.com/startups/tech-stacks) - [Founder & VC Insights](https://www.hubspot.com/startups/scaling-smarter) - [Podcast](https://www.hubspot.com/startups/podcast) - [Stories](https://www.hubspot.com/startups/stories) Show submenu for Stories - [Digital Magazine](https://www.hubspot.com/startups/magazine) - [DocuSeries](https://www.hubspot.com/startups/docuseries) - [Case Studies](https://www.hubspot.com/startups/stories/customers) - [Community](https://www.hubspot.com/startups/community) - [Partner](https://www.hubspot.com/startups/partners) - [Apply Now](https://app.hubspot.com/signup-hubspot/hubspot-for-startups) - [Resources](https://www.hubspot.com/startups/resources) Show submenu for Resources - [Fundraising](https://www.hubspot.com/startups/fundraising) - [Sales & Marketing](https://www.hubspot.com/startups/sales-and-marketing) - [AI Tech & Tips](https://www.hubspot.com/startups/ai) - [Tech Stack Guide](https://www.hubspot.com/startups/tech-stacks) - [Founder & VC Insights](https://www.hubspot.com/startups/scaling-smarter) - [Podcast](https://www.hubspot.com/startups/podcast) - [Stories](https://www.hubspot.com/startups/stories) Show submenu for Stories - [Digital Magazine](https://www.hubspot.com/startups/magazine) - [DocuSeries](https://www.hubspot.com/startups/docuseries) - [Case Studies](https://www.hubspot.com/startups/stories/customers) - [Community](https://www.hubspot.com/startups/community) - [Partner](https://www.hubspot.com/startups/partners) - [Apply Now](https://app.hubspot.com/signup-hubspot/hubspot-for-startups) # Six Ways to Master the Term Sheet \[+Template] HubSpot for Startups and AWS bring you a guide to make sure you are fully prepared when it comes time to make your term sheet. Get the term sheet templates term sheet templates  A term sheet is something that will affect you and your company for many years to come, so getting it right is crucial. Technically, a term sheet is a non-binding legal document laying out the basic terms and conditions regarding a joint venture between an investor and a company. Term sheets require a great deal of preparation because they serve as a template for a future binding agreement between the two parties. The primary purpose of a term sheet, in a nutshell, is to craft a detailed document that both the investor and company owner can use to negotiate a fair deal without the permanency of a binding document. When done right, term sheets can also avoid future disputes regarding expenses and obligations. The challenge, then, is composing a term sheet with reasonable provisions for both the investor and the company — because there's a lot at stake. Term sheets help investors safeguard their capital and have lasting implications for businesses, especially for those raising equity. Term sheet mistakes could be costly, as one might end up giving away more equity than they intended or losing control over their business. For this reason, business owners should be well-versed in how to master the term sheet before entering into negotiations with an investor. A term sheet usually has the following parts, although it may vary depending on the specific agreement: - Board of Directors: Establishing board members early on assures both parties that the business is appropriately structured - Information About the Company: This includes the company's name, starting valuation, and other relevant information - Investment Overview: This pertains to crucial information about the investment, such as the initial investment amount, the percentage it will earn, and investor commitment terms - Voting Rights: This part will explain how much of the company's future initiatives will be overseen by the investor - Participation Rights: This portion protects investors should they decide to take back their share by receiving a return before other investors. - Liquidation Preferences: Companies may choose to specify a liquidation preference that explains how investors would receive the proceeds if the company is sold, as well as a confidentiality agreement If you're ready to get started, here are six tips for mastering the term sheet. ## Get access to the term sheet now! Business Email* First Name* Last Name* Primary role* Please SelectStartup FounderStartup Team MemberVC/InvestorStartup Ecosystem ProfessionalEnterprise Leader (Director+)Enterprise EmployeeAgency, Consultant, or Service ProviderOtherCreator or Media Content Language reCAPTCHA score GACLIENTIDAnonymously identifies a browser instance. This is a non-authenticated, cookie-based identifier created automatically by a Analytics-enabled site on a user’s first visit. Identifying users with Client ID is best suited for businesses focused on lead generation and new customers acquisition. Added to join our customer data to google data at the request of MOps on 12/19/18 (See BIZREQ-11194). \[DO NOT USE] GAUSERIDEnables the analysis of groups of sessions, across devices, using a unique, persistent, and non-personally identifiable ID string representing a user. Added to join our customer data to google data at the request of MOps on 12/19/18 (See BIZREQ-11194). GATRACKIDThe google tracking ID. Added to join our customer data to google data at the request of MOps on 12/19/18 (See BIZREQ-11194). We're committed to your privacy. HubSpot uses the information you provide to us to contact you about our relevant content, products, and services. You may unsubscribe from these communications at any time. For more information, check out our [Privacy Policy](https://legal.hubspot.com/privacy-policy). ## Built to scale with HubSpot for Startups It takes some time to put together a startup pitch deck that works, but once you’ve nailed your presentation, you can reuse it for multiple pitches with just a few tweaks to update any data or statistics. [HubSpot for Startups](https://www.hubspot.com/startups) helps you track marketing and sales data to make this process easier. New investors can rest easy knowing you’ve got the support of HubSpot’s powerful CRM at your fingertips. ## Amazon Web Services From Airbnb to Zocdoc, the world’s top startups build on Amazon Web Services. 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Business Email* First Name* Last Name* Primary role* Please SelectStartup FounderStartup Team MemberVC/InvestorStartup Ecosystem ProfessionalEnterprise Leader (Director+)Enterprise EmployeeAgency, Consultant, or Service ProviderOtherCreator or Media Content Language reCAPTCHA score GACLIENTIDAnonymously identifies a browser instance. This is a non-authenticated, cookie-based identifier created automatically by a Analytics-enabled site on a user’s first visit. Identifying users with Client ID is best suited for businesses focused on lead generation and new customers acquisition. Added to join our customer data to google data at the request of MOps on 12/19/18 (See BIZREQ-11194). \[DO NOT USE] GAUSERIDEnables the analysis of groups of sessions, across devices, using a unique, persistent, and non-personally identifiable ID string representing a user. Added to join our customer data to google data at the request of MOps on 12/19/18 (See BIZREQ-11194). GATRACKIDThe google tracking ID. 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