Term Sheet - Investor

Use this Term Sheet if:

You are preparing for Seed Round investment and would like to set out the negotiated terms to an investor to join your business.

Why do I need a Term Sheet?

If you are launching your seed investment round and looking at investors coming on board to join your business, a Term Sheet is a great document as a pre-cursor to a Shareholders Agreement. It sets out the negotiated terms and clearly states the intention of both parties to enter into a legally binding agreement in the near future.

What does the Term Sheet cover

• Details of investor
• Investment round details
• Class of shares (preference or ordinary)
• Investment amount
• Percentage of equity
• Liquidation preference
• Conversion mechanics
• Anti-dilution 
• Dividends provision
• Share cap table
• Timetable to complete agreement
• Key provisions of shareholders and subscription agreements
• Details of board members
• Details of shareholders
• Decisions that need resolutions
• Exclusivity
• Confidentiality

Other documents you may need:

• Term Sheet – Sale of Business
• Information Memorandum Disclaimer
• Allotment Journal