Today, 21 European early-stage VC firms released a standard term sheet they will use as guideline for their future investments (actually they released 2 term sheets – one for “general use” and another designed to facilitate the EIS tax relief for investments in small private companies). Both docs were drafted for the UK market, but the general idea should be the same in most countries. Especially first-time entrepreneurs in Europe without much experience in dealing with investors can benefit greatly from this document. While the terms will still be adjusted as required for each transaction, these general guidelines give entrepreneurs a good idea of what is considered “common practice” in a term sheet. This will also help to reduce legal costs and speed up the whole investment process.
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