Term sheet template for angel investment 2026

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  1. Click ‘Get Form’ to open the term sheet template in the editor.
  2. Begin by entering the name of the company and the province in the designated fields. This sets the context for your investment terms.
  3. Fill in the 'Size of Offering' and 'Minimum to Close' sections with your desired amounts, ensuring clarity on financial expectations.
  4. Specify the 'Amount of Investment and Pre-Money Valuation'. Input your investment amount alongside a realistic pre-money valuation to attract potential investors.
  5. Complete sections on 'Warrants', 'Dividends', and 'Liquidation Preference' by detailing specific percentages and conditions that apply to your investment scenario.
  6. Review and finalize all entries, ensuring that each section accurately reflects your intentions before saving or sharing the document.

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The term sheet is the document that outlines the terms by which an investor (angel or venture capital investor) will make a financial investment in your company. Term sheets tend to consist of three sections: funding, corporate governance and liquidation. (For more details, please see Understanding a term sheet.)
The five key points of a term sheet are the investment amount, which specifies the capital the investor contributes, the valuation of the company, the equity ownership that the investor receives, the liquidation preferences that define how exit proceeds are distributed, and voting rights, which determine investor
4 Steps to Create a Term Sheet Investment amount. Timing. Company valuation. Form of investment. Stock option plans. Parties rights and responsibilities. Board representation. Time frame for deal completion.
An angel investors term sheet is a non-binding document that functions as a letter of intent proposing a funding deal. This is not a legal document but is treated with utmost priority. Once an investor presents this document to a startup, they automatically share a bond of confidentiality.
Angel investing almost always require a shareholder agreement between the founder group and the new investors. This is a binding contract between the shareholders of a corporation, defining the shareholders rights, privileges, protections and obligations.

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