Example Common Stock Term Sheet

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Updated August 29, 2023
Angel Investing

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For your convenience, this template document is available as a Google Doc to make it easier to copy and edit. All material here is provided for illustration only; please read the disclaimer before use.

[COMPANY]

Term Sheet

Common Stock Offering

_____________, 20__

Company:[Company], a [Delaware] corporation.
Type of Security:Common Stock
Pre-Money Valuation$________
Offering Size:The Company intends to raise as much as $________ in this offering, although the Company may increase or decrease this amount in its sole discretion
Price Per Share:$________ per share
Sale:If the Company is sold before the conversion of the notes sold in the offering, holders of the notes will be entitled to be paid the greater of: (i) [3]X their note principal and accrued interest, or (ii) the amount they would have received had they converted to equity at the Valuation Cap
Minimum Investment:$________ (may be waived by the Company in its sole discretion)
Shares Authorized To Be Sold in This Offering:________
Dividends:When, as and if declared by the board. The Company has not paid dividends in the past and does not currently contemplate that it will pay dividends in the future
Voting Rights:All shares have the same voting rights
Investor Eligibility:“Accredited Investors” only
Information:The Company will provide additional information upon request
Closings:One or more closings as the Company accepts subscriptions
Use of Proceeds:Working capital; proceeds will be immediately available to the Company
Subscription Procedure:Investors must execute a Common Stock Purchase Agreement, which will include a right of first refusal agreement in favor of the Company on any proposed transfers of Common Stock purchased in the offering

Capitalization

(as of ________, 20__, as adjusted for maximum offering)

No. of Shares% on Fully-Diluted Basis
Issued and outstanding Common Shares:________________%
Stock option pool to be reserved:________________%
Common stock to be sold in the offering:________________%
________100%

Example Revenue Loan Term Sheet

For your convenience, this template document is available as a Google Doc to make it easier to copy and edit. All material here is provided for illustration only; please read the disclaimer before use.

Term Sheet for a Revenue Loan

This Term Sheet is non-binding, and is meant to try to capture the parties’ intentions about the terms of a potential investment. However, neither of the parties have any obligations to one another until they enter into and sign definitive agreements.

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