Angel Investor Terms: Everything You Need To Know
Angel investor terms are used to define the relationship between an investor and the company receiving the investment.3 min read
Angel investor terms are used to define the relationship between an investor and the company receiving the investment. The terms of this type of agreement are established with a non-binding document called a term sheet. This is similar to a letter of intent as it creates the intention of moving forward with a partnership and often leads to a legally binding agreement.
What Is Included on a Term Sheet?
The term sheet for an angel investor is usually about 10 pages long, compared to 20 pages or more for a venture capital term sheet. These pages summarize the deal's proposed terms and can be used to attract potential investors and as a guide for attorneys to create the legally binding investment agreement.0px;" class="adsbygoogle">