A term sheet is the document that sets the key economic and control terms of a proposed investment, serving as the blueprint for closing documents. It is typically non-binding, short (usually 4 to 8 pages), is negotiated before legal counsel drafts the full agreements, sets every important number and right that will end up in the deal, and is the concrete artifact of [Lead Investor Conversion].
A standard venture term sheet covers the round size, pre-money valuation, security type (preferred stock, SAFE, or convertible note), liquidation preference (typically 1x non-participating), anti-dilution protection (almost always broad-based weighted-average), option pool size and whether it sits in pre-money, board composition, protectiv...