The latest edition of HSBC Innovation Banking's annual Venture Capital Term Sheet Guide explores the key terms and clauses of 426 final, signed term sheets to empower founders with an objective view of the market standard so that they can negotiate with confidence.
Key findings of the report include:
- Seed investment up as investor focus shifts. Seed investments represented 29% of total term sheets analysed, up from 24% in 2022, as investors shifted their focus to earlier stages with many late-stage companies struggling with recaps and down rounds.
- CleanTech, HealthTech and AI surge. 2023 saw increased CleanTech and AI activity, which represented approximately 20% of term sheets surveyed, and sustained interest in HealthTech. These sectors are expected to remain attractive in 2024.
- Cross-border interest in later-stage UK companies. While most seed (67%) and Series A (57%) investment into UK companies came from local investors, more than half of Series B and C+ investment came from abroad as investors seek stable opportunities.
- Increased focus on diversity. 11% of term sheets surveyed had a diversity clause, up from 8% in 2022.
To read the full report, download below.
This report was published in March 2024 on the HSBC Innovation Banking website.
Website: Venture Capital Term Sheet Guide 2024 (hsbcinnovationbanking.com)
