... interest, the parties proceed to discuss the terms of a potential deal. The investor estimates the estimated value of the company (valuation) and proposes terms: what share he wants to receive for the planned investment amount. These key parameters are recorded in a document called a Term Sheet (preliminary agreement of intent). The Term Sheet is not legally binding, but it specifies key points: pre-money valuation of the company, investment volume, investor share, investor rights (for example, a seat ...