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Venture Capital Term Sheet (Short Form) |
$25.00 |
| This is a sample term sheet for investment by venture capitalists in a Series B Convertible Preferred Stock round of financing in a company. This form tends to be pro-venture capitalist oriented.
Format: |
Microsoft Word[ABC, Inc.]
Summary of Principal Terms for an Offering of Series B Preferred Stock
| Company: | [ABC, Inc.] (the "Company") |
| Amonut: | [$5,000,000] |
| Type of Security: | Series B Convertible Preferred Stock |
| Number of Shares: | [1,000,000] |
| Price per Share: | [$5.00] (the "Original Purchase Price"). The Original Purchase Price represents a fully-diluted pre-money valuation of [$50] million. |
| Investors: | [SD Venture Fund] and its affiliated funds (collectively referred to as the "Investors") |
| Anticipated Closing Date: | ____________________ |
| Pari Passu: | Except as set forth below, the Series B Preferred Stock (the "Preferred") will be treated as pari passu with the Series A Preferred of the Company (the "Prior Preferred" with the Preferred and Prior Preferred collectively referred to as the "Series Preferred"). |
| Dividends: | The holders of the Preferred shall be entitled to receive out of legally available funds, dividends at a rate of [8%] of the Original Purchase Price per annum, payable when, as and if declared by the Board of Directors. Dividends shall not be cumulative. |
| Liquidation Preference: | In the event of any liquidation, dissolution or winding up of the Company, the holders of the Series Preferred shall be entitled to receive in preference to the Common Stock (the "Common") an amount payable in cash equal to the Original Purchase Price for the Preferred and the original purchase price for the Prior Preferred plus declared and unpaid dividends (the "Liquidation Preference"). After the payment of the Liquidation Preference to the holders of the Series Preferred, the remaining assets shall be distributed ratably to the holders of the Common and the Series Preferred (assuming the conversion of all Preferred Stock).A merger, reorganization or other acquisition type transaction in which control of the Company or all or substantially all of its assets is transferred will be treated by holders of the Series Preferred as a liquidation.... |
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This is only a partial view of this document. Venture Capital Term Sheet (Short Form) is just $25.00 and can be immediately downloaded after purchase. |
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This form is included in the
Venture Capital Kit
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These forms are essential for any company seeking venture capital financing. Save time and money by buying the entire packet for one low price.
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This form is included in the
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$125.00
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More Related Forms
- Due Diligence Checklist
- Checklist for Acquisition of a Private Company
- Finder's Fee Agreement
- Due Diligence Questionnaire
- Contract Checklist
- Important Boilerplate Provisions for Contracts
- Long Form Venture Capital Term Sheet
- Investment Analysis Summary Used by Venture Capitalists
- Venture Capital Bridge Note
- Investors Rights Agreement
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