LOI
A letter of intent, or LOI, summarizes proposed terms for a possible transaction. Some provisions may be binding while others are not, depending on wording and law.
Why it matters to a capital raiser
I ask counsel to review an LOI and avoid treating a proposal as a completed agreement.
Related terms
A term can mean something different in a particular deal, so read it with the governing documents. General education only. Not legal, tax or investment advice.