Document background
The Funding Term Sheet is a crucial document in the Swiss investment landscape, typically used during the preliminary stages of investment negotiations between companies seeking capital and potential investors. This document, while generally non-binding, sets out the fundamental terms and conditions that will form the basis of the final investment agreements. Under Swiss law, the Term Sheet must consider various legal frameworks, particularly the Swiss Code of Obligations and financial market regulations. It typically includes essential information about valuation, investment structure, investor rights, governance, and exit provisions. The document is particularly important in Switzerland's sophisticated financial market, where both domestic and international investors frequently engage in funding rounds across various stages of company growth, from seed funding to later-stage investments.
