Term Sheet is used to outline the key terms and conditions of a proposed business agreement or transaction, typically in the context of venture capital investments, mergers and acquisitions, and other complex business deals.

No, a term sheet is not a legally binding agreement. It serves as a preliminary document that outlines the key terms and conditions of a proposed deal, but does not legally obligate the parties involved to complete the transaction.

A term sheet should include information such as the investment amount, investment timeline, rights and obligations of the parties involved, board representation, voting rights, liquidation preference, dividend policy, anti-dilution provisions, warrants, and exit strategy. The specific details included in a term sheet will depend on the nature of the transaction.

The time it takes to draft a term sheet will depend on the complexity of the transaction and the number of parties involved. It may take anywhere from a few days to several weeks to finalize the term sheet.

The term sheet is typically drafted by the investment bank, law firm, or other professional involved in the transaction. However, the specific responsibilities for drafting the term sheet will depend on the details of the deal and the parties involved.

After the term sheet is signed, the parties involved will begin the negotiation process to finalize the terms and conditions of the deal. This may involve further due diligence, the drafting of legal agreements, and the completion of any other necessary steps to finalize the transaction.