Convertible Note Term Sheet Template

The notes will be issued pursuant to a definitive note purchase agreement containing customary covenants representations and warranties of the company.

Convertible note term sheet template. Get started hkd 500 3000 pricing varies per template login to app for exact pricing. Generate your own set of series seed notes here. The following form is a financing term sheet for convertible notes issued in connection with the seed stage financing of a startup company. Convertible note financing term sheet seed stage startup.

Companies investors and their lawyers typically understand the mechanics of convertible notes. 3 convertible note financing term sheet seed stage start up drafting note to closing. This term sheet summarizes key terms of a proposed convertible note issuance for discussion purposes only. Y combinator series aa documents.

It does not mean that we are taking any position about whether a term should or should not be included or how it should be phrased. The conversion into equity is automatic since it neither requires the vote of the investor nor that of the startup. Seed term sheet and series a term sheet. As a result the total time from start of the process to closing can be very short.

This term sheet is for discussion purposes only and is not binding on the company or the investors as defined below nor is the company or any of the investors obligated to consummate the convertible promissory note financing until a definitive convertible note purchase agreement has been agreed to and executed by the company. The note purchase agreement and convertible promissory note are essential documents for any convertible note financing. Convertible note term sheets. It is non binding and is not self executing.

These types of loan promissory notes are usually used by startups when raising capital. Free sample term sheets from series seed and ask the vc. Variable text is in unsecured unsubordinated convertible note term sheet. Returning to our sample term sheet.

This term sheet outlines a convertible note financing appropriate for a privately held company. Techstars series aa documents. Convertible promissory note financing. It includes pra ctical guidance drafting notes and alternate and optional clauses.

A convertible promissory note is one that can be converted into equity once the future specified date reaches or when a specified anticipated event happens.