What's the Point of a Term Sheet?

Caviot: The more you lay it out in the term sheet, the less squinting and guessing that the wall firms have to do later. Both the company hires council, hires lawyers. And the investors, the lead investor, usually representing all investors, hire separate council as well. It's just like buying a house. Hat's like a real estate transaction. If you only have one agent, then one party could get screwed.