Free Private Placement Term Sheet Template

PRIVATE PLACEMENT TERM SHEET

I. Introduction

[Your Company Name] is pleased to present this Private Placement Term Sheet as a preliminary agreement for potential investors interested in participating in a private placement investment deal. This document outlines the key terms and conditions of the investment opportunity between [Issuer Company] (the "Issuer") and potential investors.

II. Investment Opportunity

  1. Description of Issuer:

    • [Issuer Company] is a leading technology company specializing in innovative software solutions for the healthcare industry. With a strong track record of delivering cutting-edge products, the company is poised for rapid growth in the coming years.

  2. Investment Objective:

    • The investment objective is to raise $5 million to fuel the development of a new AI-driven healthcare platform aimed at improving patient care and optimizing healthcare workflows.

  3. Investment Amount:

    • Total Investment Sought: $5,000,000

  4. Minimum Investment:

    • Minimum Investment per Investor: $100,000

  5. Use of Proceeds:

    • 40% - Research and Development

    • 30% - Sales and Marketing

    • 20% - Operational Expenses

    • 10% - Legal and Compliance

III. Terms and Conditions

  1. Investment Terms:

    • Equity Stake Offered: 15%

    • Preferred Shares with Anti-Dilution Protection

  2. Valuation:

    • Pre-Money Valuation: $25,000,000

    • Valuation Methodology: Discounted Cash Flow (DCF) Analysis

  3. Investor Rights:

    • Voting Rights Based on Equity Ownership

    • Information Rights: Quarterly Reports and Annual Meetings

  4. Dividends and Distributions:

    • Dividends: Non-Cumulative, at the discretion of the Board

IV. Legal and Regulatory

  1. Securities Offering:

    • Compliance with SEC Regulation D for Private Placements

    • Offering Restricted to Accredited Investors

  2. Investor Representations:

    • Investors must be certified as Accredited Investors under SEC guidelines

    • Legal Capacity to Enter into an Investment Agreement

  3. Confidentiality:

    • Confidentiality Agreement to be Signed by Potential Investors.

V. Closing and Execution

  1. Closing Conditions:

    • Successful Due Diligence Review

    • Receipt of Investment Commitments from Investors

    • Regulatory Approvals Obtained

  2. Execution:

    • Investment Agreement to be Signed by Issuer and Investors

    • Delivery of Investment Funds within 30 Days of Agreement Execution

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