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.
It’s vital to communicate openly with investors and stakeholders, have a solid strategy for the future, and be ready to pivot if necessary. It’s all about keeping the faith and pushing through.
Absolutely! With the right plan and funding, companies can bounce back and even thrive. It’s all about learning from mistakes and moving forward.
Not necessarily. While it can indicate struggles, it can also show adaptability and resilience. Many companies have turned things around after a Down Round.
Existing investors might find their stake diluted, meaning they own a smaller percentage of the company. It's a tough pill to swallow, but sometimes it’s part of the game.
Terms often include the new valuation, type of shares being offered, rights for existing investors, and any changes to governance. Think of it as a new deal on the table.
Sometimes, despite best efforts, companies face challenges that affect their value. A Down Round is often a way to secure necessary funds to keep the ship afloat.
A Down Round Term Sheet is a document that outlines the terms of a funding round where a company's valuation is lower than in previous rounds. It’s like a reset button when things aren’t going as planned.