The Term Sheet is a nonbinding agreement for Angel Investors that shows the basic terms and conditions of an investment in a Startup. The term sheet serves as a template and basis for more detailed, legally binding documents. Once the parties involved reach an agreement on the set of details laid out in the term sheet, a detailed binding agreement or contract that conforms to the term sheet details is drawn up by StartupLanes.
We have optimized the term sheet as per the modern requirements of the Angel Investors and the Startups in present time.
Benefits of the Term Sheet:
- Terms and Conditions: Term Sheet includes all the important terms and conditions in a structured legal document.
- Flexibility: It gives the flexibility of formalizing the terms and conditions, yet keeping it non-binding.
- Basis for Contract: Term Sheet forms the basis of detailed contracts like SSA, SSHA and SHA.
- Funding: It is a mandatory requirement of raising funds.
- Equity Structure: It depicts the pre and post-money equity structure that gives a fair idea to the incoming investors and the founders of the equity dilution.
- Capitalization Table
- Pre-Money Equity Structure Depiction
- Post Money Share Holding Structure
- Terms and Conditions of the Term Sheet
Process of Term Sheet Drafting:
- Select the service
- Add to cart
- Select NEFT to avoid convenience fee by the Payment Gateway. Make the payment through Payment Gateway.
- The StartupLanes team will contact you
- Our Operations Team will connect you to the Legal Team
- You will get it done within 2-4 business days.
- Voila! It’s done
Frequently Asked Questions (FAQs):
Q1: Who makes the Term Sheet at StartupLanes?
A1: Our Investment Banking team along with Financial Analyst and a Startup Specialized Lawyer makes the Term Sheet. All of these are in house employees of StartupLanes. In case an external consultant has to be engaged, we do that without hesitation.
Q2: Can I take the help of the Lawyer of StartupLanes for explaining this valuation to my investors?
A2: Yes, our Lawyer can explain this Term Sheet to your investors. This service is free one-time for video conferencing, however in case you need to have multiple meetings of the Lawyer, then you can pay a nominal fee to get it.