Document background
The Startup Investment Term Sheet is a crucial preliminary document used in the context of startup fundraising and investment negotiations in Switzerland. It serves as a non-binding blueprint for the eventual investment agreement, outlining key commercial and legal terms of the proposed transaction. The document is typically used during Series A or later funding rounds when professional investors are involved, though it may also be used in significant seed rounds. The term sheet encompasses essential elements such as company valuation, investment structure, governance rights, and investor protections, all within the framework of Swiss law, particularly the Swiss Code of Obligations. While most provisions are non-binding, certain clauses such as confidentiality and exclusivity are typically binding on the parties. The document forms the basis for due diligence and the drafting of definitive agreements.
