A non-binding agreement showcasing the terms & conditions by which an investor can money in your company is called a Term Sheet. There are 3 sections in this – corporate governance, funding, and liquidation.
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Importance of a Term Sheet
A term sheet is a crucial report, specifically for an Indian entrepreneur. For instance, when a businessman has been negotiating and drafting an agreement for a long time now, the chances of finding the fundamentals of the contract not agreed upon is much high. However, in scenarios such as the above, a term sheet fixes the conflict by stating the core groundwork for the final commitment. The term sheet thereby helps emulate the expansive agreement of the consenting groups on the tangible conditions, such as cost, portions, appraisal, alertness and pre-emption.
A term sheet mainly includes:
- Details of the company, the current shareholders and the current directors
- The valuation of the company
- Reserved rights of the investors
- Price per share
- Voting rights
- Details of what the invested funds will be used for
- Any restrictions on the activities of the founders
- A summary of the rights relating to the issue and transfer of shares
- Liquidation preference
- Anti-dilution provision
- Exit Rights of the investors
- Option pool
- Information and Inspection rights
- Arbitration clause
- Governing Laws and Jurisdiction clause
- Other essential terms and provisions
Drafting of a venture capital term sheet is simple with LegalWiz.in as it has experienced lawyers who ensure highest customer satisfaction and timely delivery of services. This entire process is managed online, with regular communication and assistance by the professionals available throughout. We have clients in all major cities of India including Mumbai, Delhi, Bangalore, Pune, Ahmedabad, Hyderabad and more as well as our services have equally relevant reach within smaller cities and towns in the country.
Advantages of Term Sheet
Reduces the chances of dispute
Inherent Moral Obligation
Term Sheet Process
3 Business Days
Upon contact, your request to file for a term sheet will be received and our representative will be in touch with you to take your request forward. If we need more information from your end, we will call you as and when required. After we receive all your details, our in-house lawyers and legal experts, will create your term sheet and send it across for your view within 2- 4 business days.
2 Business Days
Your original price includes two rounds of iterations. Therefore, if you need any changes done to the term sheet, our lawyers will do the needful and send it across to you for your view once again.
Get a Term Sheet drafted in 3 Easy Steps
1. Follow Quick Process
- Pick the best suitable Package
- Spare less than 10 minutes to fill out our online Questionnaire
- Upload required documents
- Make quick payment through our secured gateways
2. Experts at LW are here to help
- Assigned Relationship Manager
- Consultation for apt clauses to safeguard sensitive information related to your business.
3. Start attracting the investors with a well drafted term sheet
- All it takes is 3 working days.
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