FINANCING TERM SHEET

---

I. Introduction

This Financing Term Sheet ("Term Sheet") outlines the key terms and conditions for a potential financing agreement between [Your Company Name] ("Company") and [Investor Name] ("Investor"). This Term Sheet serves as a preliminary agreement that sets the groundwork for more detailed negotiations and the eventual drafting of a formal financing agreement. The terms and conditions outlined herein are subject to further discussion and agreement between the Company and the Investor.

II. Parties Involved

1. [Your Company Name] (Company): A leading software development company specializing in creating innovative solutions for businesses across various industries, including fintech, healthcare, and e-commerce
   

2. [Investor Name] (Investor): prominent venture capital firm known for investing in early-stage technology startups with high growth potential. They have a portfolio of successful companies in the tech sector and a track record of strategic investments.

III. Investment Details

1. Investment Amount: $5,000,000

2. Investment Type: Equity Investment

3. Valuation: The pre-money valuation of the Company is set at $20,000,000.

4. Ownership Percentage: The Investor will receive 25% ownership in the Company post-investment.

IV. Key Terms and Conditions

1. Use of Funds: The investment proceeds will be used for strategic purposes:
   

   • Product Development

   • Marketing

   • Expansion

   • Operational Improvements
     

2. Investment Timeline: The Investor agrees to provide the investment amount in two tranches, with the first tranche of $3,000,000 to be provided upon signing this Term Sheet, and the second tranche of $2,000,000 to be disbursed within six months of the initial investment.
   

3. Board Representation: The Investor will have the right to appoint one member to the Company's Board of Directors, who will actively participate in strategic decision-making and provide valuable insights and guidance.
   

4. Anti-Dilution Protection: The Investor shall be entitled to anti-dilution protection in the event of subsequent equity rounds at a lower valuation, ensuring that their ownership stake is protected from dilution.
   

5. Exit Strategy: The parties will discuss and agree upon an exit strategy, which may include options such as acquisition by a strategic partner, initial public offering (IPO), or other liquidity events that maximize value for both the Company and the Investor.

V. Legal and Miscellaneous

1. Confidentiality: Both parties agree to maintain the confidentiality of all information shared during negotiations and the execution of this Term Sheet.
   

2. Governing Law: This Term Sheet shall be governed by and construed in accordance with the laws of [Jurisdiction].
   

3. Exclusivity: The Company agrees to grant the Investor exclusivity for 45 days to conduct due diligence and finalize the investment agreement.
   

4. Expenses: Each party will bear its expenses incurred in connection with this transaction unless otherwise agreed in writing.

VI. Signatures

This Term Sheet is subject to the execution and delivery of a formal financing agreement between the parties. The undersigned hereby agree to the terms and conditions set forth above:

[Your Name]
[Your Title]
[Date]

[Investor Name]
[Investor Title]
[Date]

---

Term Sheet Templates @ Template.net