West Virginia Term Sheet for Potential Investment in a Company

State:
Multi-State
Control #:
US-ENTREP-0046-1
Format:
Word; 
Rich Text
Instant download

Description

This Term Sheet summarizes the principal terms with respect to a potential private placement of equity securities of a "Company") by a group of investors ("Investors") led by a Venture Fund. This Term Sheet is intended solely as a basis for further discussion and is not intended to be and does not constitute a legally binding obligation except as provided under "Confidentiality," "Exclusivity", and "Expenses" below. No other legally binding obligation will be created, implied or inferred until a document in final form entitled "Stock Purchase Agreement" is executed and delivered by all parties. Without limiting the generality of the foregoing, it is the parties intent that, until that event, no agreement shall exist among them and there shall be no obligations whatsoever based on such things as parol evidence, extended negotiations, "handshakes," oral understandings, courses of conduct (including reliance and changes of position), except as provided under "Confidentiality," "Exclusivity", and "Expenses" below.
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  • Preview Term Sheet for Potential Investment in a Company
  • Preview Term Sheet for Potential Investment in a Company
  • Preview Term Sheet for Potential Investment in a Company
  • Preview Term Sheet for Potential Investment in a Company
  • Preview Term Sheet for Potential Investment in a Company
  • Preview Term Sheet for Potential Investment in a Company
  • Preview Term Sheet for Potential Investment in a Company
  • Preview Term Sheet for Potential Investment in a Company

How to fill out Term Sheet For Potential Investment In A Company?

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FAQ

6 Tips for Writing a Term Sheet List the terms. ... Summarize the terms. ... Explain the dividends. ... Include liquidation preference. ... Include voting agreement and closing items. ... Read, edit and prepare for signatures.

A term sheet can be defined as a non-binding agreement that sets out the basic conditions for making an investment. It serves as a template for developing more detailed documents that are legally binding.

A typical term sheet has the following details: The proposed amount of funding and the duration of engagement. Rights of founders and other common shareholders. Rights of investors and restrictions. Proposed use of funds (how and where the money will be spent)

A term sheet is a nonbinding agreement outlining the basic terms and conditions under which an investment will be made. Term sheets are most often associated with start-ups. Entrepreneurs find that this document is crucial to attracting investors, such as venture capitalists (VC) with capital to fund enterprises.

Once you're certain the investors offering you a term sheet are a good match, go beyond the obvious. Investment dollars and valuation are critical, of course, but don't overlook important details like option pools, liquidation preferences and the composition of your board.

What Is a Term Sheet? A term sheet is a nonbinding agreement that shows the basic terms and conditions of an investment. The term sheet serves as a template and basis for more detailed, legally binding documents.

But no matter who the investor is, a term sheet will always contain six key components, including: A valuation. An estimate of what a company is worth as an investment opportunity. ... Securities being issued. ... Board rights. ... Investor protections. ... Dealing with shares. ... Miscellaneous provisions.

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West Virginia Term Sheet for Potential Investment in a Company