One Page Term Sheet

I. Introduction

The [Your Company Name] ("Term Sheet") serves as a foundational document outlining the key terms and conditions of a business agreement. It is designed to streamline negotiations for investments, acquisitions, or partnerships, presenting complex legal and financial concepts in a simplified format.

II. Executive Summary

The Executive Summary provides a brief overview of the agreement, highlighting its objectives, parties involved, and key terms. It offers a snapshot of the proposed deal, allowing stakeholders to grasp its essence quickly.

III. Parties Involved

This section identifies the parties agreeing:

[Investor(s)]: Name(s) of the investor(s) or acquiring entity.
[Your Company Name]: Name of the company seeking investment or being acquired.

IV. Investment Details

Outlined here are the specifics of the investment or acquisition:

Investment Amount: [$5,000,000]
Equity Stake: Percentage of equity offered in exchange for investment.
Valuation: Pre-money or post-money valuation, if applicable.
Investment Terms: Warrants, convertible notes, and preferred stock are types of securities.

V. Governance and Control

This section delineates the governance structure and control mechanisms:

Board Representation: Details regarding board seats for investors.
Voting Rights: Grant investor approval and voting rights for major decisions.
Management Changes: Appointment and removal of key executives.

VI. Financial Terms

Here, the financial aspects of the agreement are elaborated:

Liquidation Preference: Priority distribution of proceeds upon liquidation.
Dividend Rights: Rights to receive dividends, if any.
Anti-Dilution Protection: Safeguards against investor equity dilution.

VII. Exit Strategy

The Exit Strategy outlines options for exiting the investment:

IPO: Plans for an initial public offering, if applicable.
Acquisition: Conditions for selling the company or merger opportunities.
Other Exit Scenarios: Alternative exit strategies considered.

VIII. Legal and Miscellaneous Provisions

This section includes miscellaneous provisions and legal safeguards:

Confidentiality: Confidentiality obligations for shared information.
Governing Law: Jurisdiction and laws governing the agreement.
Amendment and Waiver: Procedures for amending or waiving terms.
Miscellaneous: Any other legal provisions deemed necessary.

IX. Signature

By signing below, the parties acknowledge their agreement to the terms outlined in this [Your Company Name] ("Term Sheet").

[Your Company Name]

Investor

[Your Name]
[Your Title]

[Date Signed]

[Investor Name]
[Investor Title]

[Date Signed]

[Investor Name]
[Investor Title]

[Date Signed]