For those who don’t know, a term sheet is a document that summarizes the terms by which an investor is agreed upon to do investment in your company.
Majority of startups don’t have a well versed legal team.
And doing legal things without having complete knowledge of legalities can cripple a startup.
Some businesses have gone bankrupt due to their negligence.
The StartUp Lab understands this and assists startups with the legal side of the business.
A term sheet generally consists of the following terms
- Who is granting the note or stock
- Which kind of collateral is being proposed
- Voting rights in the company
- Founder’s responsibilities
- Valuation of the company
- Amount being funded
- Total shares and price
- What happens on liquidation or IPO
- Total number of board seats
- Anti-dilution conditions
- Conversion alternatives
- Investors rights to information
- Who will pay legal fees
- Non-disclosure regulations
- Rights to future investment
How can we help you?
We make sure that the term sheet is a win-win situation for all the parties involved.
In a term sheet, there can be points which can cause a problem for the startup later.
Some terms look good in short terms but can trouble your business later. We make sure every term is beneficial to your business.
Following are the points that we take into consideration to help you with a suitable term sheet. We make sure the term sheet doesn’t have
- Any intense debt financing that could harm your startup’s growth
- An unreasonable controlling stake
- Conditions that can restrict fundraising in the future
So, if trust is what you are looking for, choose us.
Still in doubt?
No problem. Just give us a call or mail us to know more about our services.