Term Sheet for an Investor
Date: August 30, 2060
This Term Sheet (the “Term Sheet”) summarizes the principal terms of the proposed investment (the “Investment”) in [YOUR COMPANY NAME], a Delaware corporation (the “Company”). This Term Sheet is for discussion purposes only and does not constitute a binding agreement except for the sections titled "Confidentiality" and "Exclusivity".
1. Investment Overview
Investor: Venture Capital Partners, LLC
Company: [YOUR COMPANY NAME]
Amount of Investment: $5,000,000
Type of Security: Series A Preferred Stock
Pre-Money Valuation: $20,000,000
Post-Money Valuation: $25,000,000
2. Investment Terms
Price per Share: $10.00
Number of Shares/Notes: 500,000 shares
Closing Date: September 30, 2060
Use of Proceeds: Product development, marketing, and operational expansion
3. Equity Ownership
Investor’s Ownership Percentage: 20%
Total Outstanding Shares Post-Investment: 2,500,000 shares
Investor’s Pro-Rata Rights: The Investor shall have the right to participate in future financings to maintain their percentage ownership
4. Dividend Rights
Dividend Rate: 8% per annum
Dividend Payment Schedule: Annually
Dividend Priority: Cumulative
5. Liquidation Preference
Liquidation Preference: 1x
Participation Rights: Non-Participating
Conversion Rights: Convertible into common stock at the option of the holder
6. Governance
Board Representation: 1 seat on the Board of Directors
Observer Rights: Right to attend Board meetings as a non-voting observer
Veto Rights: Investor has veto rights on major corporate decisions including mergers, acquisitions, and issuance of new securities
7. Warrants and Options
8. Confidentiality and Exclusivity
9. Conditions Precedent
Due Diligence: Completion of investor due diligence by September 15, 2060
Legal and Financial Approvals: Approval from the Company’s legal and financial advisors
Contract Execution: Finalization of definitive agreements by September 30, 2060
10. Miscellaneous
Acceptance:
This Term Sheet is non-binding except for the Confidentiality and Exclusivity sections. It reflects the current understanding of the parties but is subject to the negotiation and execution of definitive agreements.
Investor Signature:
Date: August 30, 2060
[YOUR COMPANY NAME] Representative Signature:
Date: August 30, 2060
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