Model Term Sheet for a Series A Round (BVCA)
Jurisdiction
England and WalesContract party
Relevant sectors
Type of legal document
📃 Investment Agreement Term SheetBusiness activity
Agree an investment term sheetA investment agreement term sheet is a document that outlines the major terms and conditions of a proposed investment transaction, and is typically used to precede the drafting of a more detailed legally binding agreement. The term sheet sets forth the key terms and provisions of the proposed transaction, and provides the framework within which the parties will negotiate the final terms of their agreement.
The template aims to establish a set of standard terms and conditions that guide the negotiation and structuring of investments in early-stage companies seeking growth capital. It follows the best practices recommended by the British Private Equity & Venture Capital Association (BVCA).
This Model Term Sheet serves as the initial agreement that outlines the key terms and conditions of the investment, providing a framework that can later be used to create definitive legal documentation. It covers a wide range of essential aspects, including but not limited to:
1. Company information: Pertinent details about the startup, such as its legal name, registered address, company registration number, and industry.
2. Investment details: The total amount of investment sought, minimum and maximum investment thresholds, and the proposed equity stake the investor would receive in return for their investment.
3. Share classes and rights: Specifies the type and class of shares being offered, highlighting any special rights, privileges, or preferences associated with those shares.
4. Valuation and pre-money valuation cap: Determines the startup's valuation for the purpose of calculating the investment amount and the investor's equity stake. It may also include a pre-money valuation cap to protect the investor in case of further fundraising at a significantly higher valuation.
5. Dilution protection: Addresses mechanisms to safeguard the investor against future dilution of their ownership percentage, such as preemptive rights, anti-dilution provisions, or participation rights.
6. Dividend policy: Outlines the startup's policy regarding distributions or dividends to shareholders, if applicable.
7. Liquidation preferences: Specifies the order of priority in which the investors will receive their investment back in the event of a liquidation or sale of the company.
8. Board composition and voting rights: Determines the number of board seats each party will be entitled to, along with voting rights and protocols for decision-making.
9. Information rights and investor protection: Establishes the level of information and financial reporting the startup must provide to the investor, enabling proper monitoring and assessment of the company's performance.
10. Lock-up periods, exit rights, and drag-along provisions: Outlines any restrictions on transferring or selling shares, as well as the terms for potential exit opportunities and the investor's ability to participate in the sale of the company.
11. Governing law and dispute resolution: Specifies that the agreement will be governed by UK law and outlines procedures for resolving any potential disputes that may arise.
Please note that this is a general description, and the actual template may contain more detailed provisions according to the specific requirements and considerations of the parties involved. It is advisable to consult legal professionals for advice and customization to ensure compliance with applicable laws and regulations.
How it works
Try using Genie's Free AI Legal Assistant
Generate quality, formatted contracts with AI
Can’t find the right template? Create the bespoke agreement in minutes by conversing with our AI and tailoring to your needs
Let our Legal AI make edits for you
Ask Genie to edit your document in the same way you’d ask a paralegal. Genie makes track changes, and explains its thinking just like a junior lawyer would.
AI review
Can’t find the right template? Create the bespoke agreement in minutes by conversing with our AI and tailoring to your needs
Book your personalised demo now
Similar legal templates
Voluntary Notice of RLE or PSC Status
In the UK, RLEs are typically large corporations or organizations that have certain legal obligations and responsibilities, such as maintaining accurate records and providing details about their beneficial owners. On the other hand, PSCs are individuals who exert significant influence or control over a UK company, either directly or indirectly, and must also be disclosed.
This legal template would outline the relevant legal requirements and provide a standardized format for an entity or individual to voluntarily notify the appropriate authorities, typically Companies House, of their RLE or PSC status. The template may include sections to input personal details, company information, and relevant declarations. It may also outline any supporting documents or evidence required to validate the disclosure.
By voluntarily submitting this notice, the individual or entity is demonstrating compliance with UK laws and regulations, promoting transparency, and ensuring that there is accurate information available to the authorities and interested parties. Overall, this template serves as a formal means for someone to proactively disclose their RLE or PSC status in accordance with UK legal obligations.
Publisher
Genie AIJurisdiction
England and WalesVeterinary Receptionist Contract
This Veterinary Receptionist contract template is designed for a commercial practice administration organisation (or an individual veterinary receptionist) to use when contracting out their skills and services in exchange for payment. This contract sets out the type of practice administration and practice-administration-related services to be completed by the veterinary receptionist on behalf of the client, with consideration for expectations around quality and delivery timescales, as well as any mitigating circumstances. This contract allows for payment to be made by the client to the practice administration firm or individual veterinary receptionist on a weekly or monthly basis but can easily be edited to account for other payment schedules and could be altered to include bonuses conditional on performance. It can also be fully customised with the details of the two parties and the duration of the contract and can be printed, downloaded and edited freely as part of our mission to open source business legals. This is a template for contractors who fit outside of the UK's off-payroll working rules (IR35).
