Term Sheet Important Things to Know

Company Letterhead

{{company_name}}

{{company_address}}

{{phone}}

{{email}}

{{website}}

Date

{{date}}

Confidentiality

This Term Sheet and all information contained herein are strictly confidential and are not to be disclosed to any third party without the prior written consent of {{company_name}}.

Parties

**Issuer:** {{company_name}}, a company duly incorporated under the laws of {{country}}, with its registered office at {{company_address}}.

**Lead Investor:** {{investor_name}}, a company/individual residing at {{investor_address}}.

Proposed Investment

**Investment Amount:** {{currency}}{{investment_amount}}

**Type of Security:** {{type_of_security}} (e.g., Ordinary Shares, Preference Shares, Convertible Notes)

**Pre-Money Valuation:** {{currency}}{{pre_money_valuation}}

**Post-Money Valuation:** {{currency}}{{post_money_valuation}}

**Equity Stake:** {{equity_stake}}% of the fully diluted share capital of {{company_name}}.

**Use of Proceeds:** The investment proceeds shall be used for {{use_of_proceeds}} as outlined in the company's business plan.

Key Terms of Securities

**Liquidation Preference:** In the event of liquidation, investors holding {{type_of_security}} will receive {{liquidation_preference_multiple}} times their original investment before any distribution to ordinary shareholders.

**Anti-Dilution Provisions:** Investors will be protected against future dilutive issuances through {{anti_dilution_type}} provisions (e.g., broad-based weighted average).

**Board Representation:** Investors shall have the right to appoint {{number_of_directors}} director(s) to the Board of Directors of {{company_name}}.

**Protective Provisions:** Certain actions by the company (e.g., sale of the company, material changes to the business plan, creation of new share classes) will require the consent of the investors.

**Information Rights:** Investors will receive regular financial and operational reports, including quarterly management accounts and annual audited financial statements.

Conditions Precedent to Closing

The investment is conditional upon, among other things, the satisfactory completion of legal, financial, and business due diligence by the investors; the execution of definitive legal documents; and obtaining all necessary corporate and regulatory approvals.

Exclusivity

For a period of {{exclusivity_period}} days from the date of this Term Sheet, {{company_name}} agrees not to solicit, initiate, or encourage any other offers for financing or sale of the company.

Governing Law

This Term Sheet shall be governed by and construed in accordance with the laws of {{country}}.

Non-Binding Nature

This Term Sheet is an expression of intent and, except for the sections titled 'Confidentiality', 'Exclusivity', and 'Governing Law', is non-binding and does not create any legal obligation on the part of any party to consummate the proposed transaction. A binding agreement will only arise upon the execution and delivery of definitive legal documents.

Signatures

Agreed and accepted by:

_________________________

{{founder_name}}

CEO, {{company_name}}

_________________________

{{investor_representative_name}}

Representative, {{investor_name}}