NVCA (National Venture Capital Association) Term Sheet
I. Introduction
The NVCA Term Sheet serves as a foundational document outlining the key terms and conditions of a venture capital investment. This agreement establishes the framework for the investment process and sets expectations for both the investor and the [Your Company Name]. It is crucial for both parties to thoroughly review and negotiate the terms outlined in this document to ensure alignment and mitigate potential conflicts down the line.
II. Parties
A. Investor: [Investor Name]
B. Startup Company: [Your Company Name]
III. Key Terms
A. Valuation
The pre-money valuation of the Startup Company is determined to be a Pre-money Valuation of $5,000,000.
The post-money valuation, including the investment amount, stands at Post-money Valuation $7,000,000.
B. Investment Amount
C. Liquidation Preference
The Liquidation Preference outlines that the Investor shall receive 1.5 times their original investment before any distributions to the common shareholders in the event of a liquidation event.
The Liquidation Preference may be participating or non-participating, as negotiated between the parties.
IV. Governance and Control
A. Board of Directors
B. Protective Provisions
V. Vesting and Equity Incentive Plan
A. Vesting Schedule
B. Equity Incentive Plan
The Company shall establish an Equity Incentive Plan, providing for the issuance of stock options to key employees, consultants, and advisors.
VI. Confidentiality and Non-Disclosure
A. Confidential Information
B. Non-Disclosure
VII. Miscellaneous
A. Governing Law and Jurisdiction
B. Entire Agreement
This Term Sheet constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes all prior negotiations, understandings, and agreements, whether written or oral.
[Your Name]
[Your Position]
[Your Company Number]
Term Sheet Templates @ Template.net
