Exploding term sheet

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Exploding term sheet

Venture capital jargon. Often a proposed term sheet might explode or be null and void in a fixed period set to negotiate the final contract.

Exploding Term Sheet

In venture capital, a term sheet for a business agreement that may not be finalized. A term sheet is a preliminary agreement between a venture capital firm and a business it intends to finance; it outlines the terms of what each party expects from the other, usually in a bullet point fashion. It is not usually binding. A term sheet may "explode" if either party backs out of the deal and the term sheet does not culminate in a final contract between the venture capital firm and the business.