A venture capital (VC) term sheet is a foundational document that outlines the key terms and conditions of an investment deal between a startup and an investor, serving as a roadmap for finalizing legally binding agreements. While typically non-binding, it establishes critical economic and control provisions, such as the investment amount, company valuation, equity ownership, board composition, and investor rights. It also defines important protections, including dividend rights, founder share vesting, liquidation preferences, and anti-dilution clauses, ensuring that both the startup and the investor understand their rights and obligations before proceeding to a formal contract. Some provisions, such as confidentiality clauses and expense reimbursement, may be legally binding to safeguard the negotiation process. A well-structured term sheet helps streamline due diligence, reduce legal costs, and prevent misunderstandings, ultimately enabling a smoother and more efficient investment process. By setting clear expectations on governance, financial returns, and operational control, the term sheet plays a crucial role in aligning investor and founder interests, laying the groundwork for a successful long-term partnership.,

The study provides a comprehensive overview of research in venture capital (VC) and private equity (PE), delivering valuable insights into current trends, evolving investment strategies, and future research directions. By analyzing a vast body of literature, it highlights the global nature of VC and PE research, incorporating diverse methodological approaches that enrich understanding of these fields. Within venture capital, the study identifies foundational themes such as adoption, financing processes, governance structures, syndication, and the role of VC in fostering business growth and public market transitions. For private equity, it emphasizes key investment strategies, including style drift into venture capital, leveraged buyouts, privatization, valuation models, and fund performance assessments, which are crucial for understanding how PE firms create value. Additionally, the study serves as a guiding resource for future research, identifying knowledge gaps and providing scholars and industry professionals with strategic directions to explore emerging issues in VC and PE, ensuring continued advancement and innovation in these investment domains.,