Free Letter of Intent for Investment Template
Letter of Intent for Investment
November 22, 2050
TechGrowth Solutions, Inc.
5678 Startup Avenue
San Francisco, CA 94105
Dear Ms. Doe,
This Letter of Intent ("LOI") is issued by[Your Company Name] ("Investor"), regarding a proposed investment in TechGrowth Solutions, Inc. (the "Company"). The purpose of this LOI is to outline the general terms and conditions under which the Investor intends to invest in the Company, subject to further negotiation and execution of a definitive investment agreement.
1. Investment Amount
The Investor intends to invest up to USD 25,000,000 in the Company, subject to the final terms and conditions of a formal investment agreement.
2. Type of Investment
The proposed investment will be in the form of Series A preferred equity. Specific terms of the equity class will be determined during the negotiation of the definitive agreement.
3. Valuation and Equity Stake
Based on the preliminary discussions, the Company is valued at $100,000,000 USD post-money, and in exchange for the proposed investment, the Investor anticipates receiving an equity stake of 25% in the Company.
4. Conditions Precedent
The proposed investment is contingent upon the following conditions:
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Completion of satisfactory due diligence by the Investor.
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Finalization and execution of the definitive investment agreement.
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No significant negative change in the Company’s business, finances, or operations.
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Approval of the investment by the Investor’s internal governance.
5. Closing
The closing of the investment is expected to take place by January 31, 2051, subject to the completion of due diligence and other necessary approvals.
6. Exclusivity
For a period of 60 days from the date of this LOI, the Company agrees not to negotiate or enter into discussions with other potential investors regarding the proposed investment.
7. Confidentiality
Both parties agree to maintain the confidentiality of this LOI and its contents and will not disclose the terms or existence of this LOI to any third party without prior written consent, except as required by law.
8. Non-Binding Nature
This Letter of Intent is non-binding and serves only as a basis for further negotiations. Neither party is obligated to proceed with the investment unless and until a definitive investment agreement is executed. The exclusivity and confidentiality provisions are, however, binding.
We are excited about the opportunity to work with TechGrowth Solutions and look forward to progressing toward a mutually beneficial agreement.
Sincerely,
[Your Name]
Managing Director
[Your Company Name]