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], located at [Address]. |
|
Party 2 |
[Company/Partner Name], located at [Address]. |
II. Purpose
The purpose of this Term Sheet is to outline the basic terms and conditions under which [Party 1] and [Party 2] intend to enter into an agreement for [Insert Project/Investment/Partnership Details].
III. Investment Terms
|
Terms |
Description |
|---|---|
|
Investment Amount |
[Insert Amount] to be invested by [Party 1]. |
|
Valuation |
[Insert Pre/Post-Money Valuation] of [Party 2]. |
|
Equity Ownership |
[Insert Percentage] equity ownership in [Party 2] post-investment. |
IV. Use of Proceeds
Funds provided by [Party 1] will be used for the following:
-
[Insert Use Case 1, e.g., product development]
-
[Insert Use Case 2, e.g., marketing and sales]
-
[Insert Use Case 3, e.g., operational costs]
V. Key Milestones
|
Milestone |
Description |
Due Date |
|---|---|---|
|
Milestone 1 |
[Description of Milestone 1, e.g., MVP Completion] |
[Insert Date] |
|
Milestone 2 |
[Description of Milestone 2, e.g., Beta Testing] |
[Insert Date] |
|
Milestone 3 |
[Description of Milestone 3, e.g., Product Launch] |
[Insert Date] |
VI. Governance
|
Governance Terms |
Description |
|---|---|
|
Board Representation |
[Insert Number] board seats to be granted to [Party 1]. |
|
Voting Rights |
[Insert details of voting rights, if applicable]. |
VII. Exit Strategy
|
Exit Term |
Description |
|---|---|
|
Preferred Exit |
[Insert preferred exit option, e.g., IPO, acquisition]. |
|
Timeline |
Exit expected within [Insert Timeframe, e.g., 3-5 years]. |
|
Liquidation Preference |
[Insert liquidation preference details, e.g., 1x return on investment]. |
VIII. Confidentiality
Both parties agree to maintain confidentiality with respect to all discussions and terms set forth in this Term Sheet.
IX. No Legal Obligation
This Term Sheet is non-binding and for discussion purposes only. A formal agreement must be executed for any legal or financial obligations to take effect.
Signatures
|
Name |
Signature |
Date |
|---|---|---|
|
[Party 1 Representative] |
[Insert Date] |
|
|
[Party 2 Representative] |
[Insert Date] |
