This sample form, a Down-Round Term Sheet document, is usable for corporate/business matters. The language is easily adaptable to fit your circumstances. You must confirm compliance with applicable law in your state. Available in Word format.
After a down round, focusing on growth and improving business strategies is crucial. It’s time to roll up your sleeves and get back at it, like dusting yourself off after a fall.
Absolutely! While it sounds scary, a down round can provide the necessary funding to pivot or innovate, leading to a brighter future. Sometimes, you have to weather the storm to see the rainbow.
The risks include dilution of ownership and potential damage to the company's reputation. It's a tough pill to swallow, but sometimes it's necessary for survival.
Existing investors might see their ownership diluted, which can feel like losing a slice of the pie. However, it can also mean a chance for the company to rebuild and grow.
A Down Round Term Sheet is a document that outlines the terms for raising funds in a situation where a company's valuation has decreased. It's like a rainy day plan for when times are tough.