A term sheet is really, when things get real. It's the sort of flirting, getting to no u stage of investing. Make sure you get that settled before you bring in the lawyers on both sides and start putting all the documents together. The legal cost is hundreds to low thousands of dollars to originate a term sheet. If i'm originating a term sheet, that means i have the highest of commitment to the company... ten out of ten times I want to invest....