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]