Term sheet clause 19 of 25 · Founders and deal terms
Conditions to close in a term sheet
In plain English: What must happen before money arrives (due diligence, documents, approvals). Typical: Standard diligence and documents.
Founder-friendly
Clear list and target close date.
Investor-friendly
Open-ended conditions.
What to watch for
Red flag
Vague conditions like 'satisfactory diligence' with no timeline.
How to model it
Don't judge this clause by reading it; put numbers on it. In our workbooks it's modelled in Due Diligence Pack, so you can see what it changes in your ownership or your payout before you agree.
Not legal advice. Norms vary by country and market cycle. Have a startup lawyer review your term sheet before you sign.