Virginia Angel Fund Promissory Note Term Sheet

• Category: Small Business - Investment or Funding
• State: Multi-State
• Control #: US-ENTREP-004-1
• Format: Word; Rich Text

Description

An angel investor or angel (also known as a business angel or informal investor) is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. New start-up companies often turn to the private equity market for seed money because the formal equity market is reluctant to fund risky undertakings. In addition to their willingness to invest in a start-up, angel investors may bring other assets to the partnership. They are often a source of encouragement; they may be mentors in how best to guide a new business through the start-up phase and they are often willing to do this while staying out of the day-to-day management of the business.
Term sheet is a non-binding agreement setting forth the basic terms and conditions under which an investment will be made.

The Virginia Angel Fund Promissory Note Term Sheet is a legal document that outlines the terms and conditions of a loan agreement between the Virginia Angel Fund and a borrower. This term sheet serves as a preliminary agreement before the execution of the final promissory note. The Virginia Angel Fund Promissory Note Term Sheet includes various key elements to protect the interests of both parties involved. These elements may include the loan amount, interest rate, repayment terms, default provisions, collateral, and other important clauses. One type of Virginia Angel Fund Promissory Note Term Sheet is the Convertible Note Term Sheet. This type of term sheet allows the loan to convert into equity, typically at a later stage of the borrowing company's financing, providing potential future benefits to the lender. Another type of term sheet is the Secured Note Term Sheet. This term sheet includes provisions that secure the loan with collateral, protecting the lender's investment in case of default. Additionally, there might be variations in the Virginia Angel Fund Promissory Note Term Sheet based on the specific requirements of the Virginia Angel Fund or the borrower. These variations can include specific terms related to interest rate adjustments, prepayment penalties, covenants, maturity dates, and other customized provisions. In conclusion, the Virginia Angel Fund Promissory Note Term Sheet is a crucial legal document that outlines the terms and conditions of a loan agreement. It may include different types such as Convertible Note Term Sheet and Secured Note Term Sheet. The specific details of the term sheet may vary based on the agreement between the Virginia Angel Fund and the borrower.