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! A Down Round can make it tougher to attract future investors, as it might raise eyebrows about the company's health. It's like trying to fill a leaky bucket.
Employee stock options might lose some of their luster since the company's valuation drops. However, some companies may adjust their options to keep morale high.
Believe it or not, there can be some silver linings. It can attract new investors who see potential and may force the company to tighten its belt and improve its business model.
Existing investors may feel a bit under the weather since their shares are now worth less. However, it can also provide an opportunity to buy more at a lower rate.
Look for the valuation, the amount being raised, and any special terms for investors. It's like checking the fine print before signing your name on the dotted line.