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.
New investors should be cautious. Investing during a Down Round can be a double-edged sword; there's potential for recovery, but also a chance of continued struggles.
Absolutely! It can provide necessary funds for a turnaround. Think of it as hitting the brakes to get back on track.
Yes, they happen, especially in the hustle of the startup world. It's a tough gig, and sometimes the road gets bumpy.
Existing investors might feel a pinch since their shares could be worth less. It's like taking a hit on the chin, but they may still see potential for future growth.
A Down Round Term Sheet is basically a document outlining the terms when a company raises funds at a lower valuation than before. It's like taking a step back before moving forward.