Bangalore: Establishing an enterprise requires real hard work and effort. Approaching an investor to accomplish your ambition is appreciable; however you must also be cautious about the lurking dangers. The investors usually frame the term sheet favoring them. Thorough understanding of all the terms and conditions is needed before you sign the agreement with an investor. It is always advisable to seek the assistance of a lawyer to get more clarity about the points referred in the term sheet.

Now, let’s take a look at some of the important points that most entrepreneurs overlook as they consider these terms to be petty but in fact are the ones which matter the most.

#1. Term sheet should be the core

The term sheet lays the base for any investments to be made. The terms and conditions serves as a template to develop more detailed legal documents. Once both the parties reach an agreement on the it a contract can be drawn up based on it. If you feel like taking into consideration other investors and their deals, negotiate the time frame.