Term Sheet
Term Sheet
Project Name: [Insert Project Name]
Date: January 1, 2050
Prepared by: [Your Name]
I. Parties
Party |
Description |
---|---|
Party 1 |
[Investor/Company Name], [Address] |
Party 2 |
[Company/Partner Name], [Address] |
II. Purpose
Outlines the terms for an agreement between [Party 1] and [Party 2] for [Project/Investment/Partnership Details].
III. Investment Terms
Terms |
Description |
---|---|
Investment Amount |
[Insert Amount] from Party 1 |
Valuation |
[Insert Pre/Post-Money Valuation] of Party 2 |
Equity Ownership |
[Insert Percentage] post-investment |
IV. Use of Proceeds
Funds from Party 1 will be used for:
-
[Use Case 1]
-
[Use Case 2]
-
[Use Case 3]
V. Key Milestones
Milestone |
Description |
Due Date |
---|---|---|
Milestone 1 |
[MVP Completion] |
[Insert Date] |
Milestone 2 |
[Beta Testing] |
[Insert Date] |
Milestone 3 |
[Product Launch] |
[Insert Date] |
VI. Governance
Governance Terms |
Description |
---|---|
Board Representation |
[Insert Number] board seats for Party 1 |
Voting Rights |
[Insert Voting Rights Details] |
VII. Exit Strategy
Exit Term |
Description |
---|---|
Preferred Exit |
[IPO, acquisition, etc.] |
Timeline |
Exit in [3-5 years] |
Liquidation Preference |
[1x Return] |
VIII. Confidentiality
Both parties agree to maintain confidentiality of all discussions and terms.
IX. No Legal Obligation
This Term Sheet is non-binding and for discussion purposes only. A formal agreement will be required for legal obligations.
Signatures
Name |
Signature |
Date |
---|---|---|
[Party 1 Representative] |
[Insert Date] |
|
[Party 2 Representative] |
[Insert Date] |