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.
Absolutely! It's crucial to consult with a legal expert to avoid any pitfalls. You want to make sure everything's above board and no stone is left unturned.
It's essential to have a solid game plan, create a transparent communication strategy with stakeholders, and show how the funds will help get back on track.
It can leave a sour taste in some mouths, as a Down Round might signal trouble. But, if handled right, it can also show resilience and adaptability.
Keep an eye out for valuation, investment amount, and any new rights or preferences for the new investors. Those are the big fish in this pond.
It's a tough pill to swallow for existing investors, as their percentage of ownership can go down. It can feel like a setback, but sometimes it's necessary for the company’s survival.