Some Angel Groups are Beginning to Use Standardized Term Sheets

Until the mid-‘90s, the quality and consistency of term sheets offered by angels to entrepreneurs varied considerably. Some were sophisticated while most were not – as if written on the back of an envelope. Angels and entrepreneurs did other deals with only a hand-shake – no term sheet at all!

If all goes well in a deal and no subsequent investment is required, the back of the envelope or even the hand-shake may prove sufficient. But, don’t bet on it! Many things can and do go wrong. When they do, the term sheet and investment agreements prove most valuable to investors and entrepreneurs alike.

by: Bill Payne

Full Story: http://www.theicehouse.co.nz/Internal/InternalBlogs/AngelsBlog/tabid/236/EntryId/47/Some-Angel-Groups-are-Beginning-to-Use-Standardized-Term-Sheets.aspx