All Templates
Agree an investment term sheet
📃 Investment Agreement Term Sheet
Model Term Sheet for a Series A Round (BVCA)
Model Term Sheet for a Series A Round (BVCA)
Jurisdiction
England and WalesContract party
Relevant sectors
No items found.
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.
This legal template, titled "Model Term Sheet for a Series A Round (BVCA) under UK law," is a comprehensive document specifically designed to assist parties involved in a Series A financing round in the United Kingdom.
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.
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
PRODUCT HUNT
#1 Product of the Day
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
See Genie AI in action
Book your personalised demo now
Schedule a live, interactive demo with a Genie expert
Understand the most valuable features of Genie based on your workflow
Find out exactly how your business will benefit, from hours saved to faster revenue
Similar legal templates
Emi Share Option For Time And Performance (Stand-Alone)
This legal template, titled "Emi Share Option For Time And Performance (Stand-Alone) under UK law," is likely to be a document specifically designed for companies in the United Kingdom. It focuses on providing a framework for Employee Share Option Plans (ESOPs) that allow employees to acquire shares in the company based on their tenure and performance.
The template likely sets out the terms and conditions of the share option plan, detailing the eligibility criteria for employees to participate. It may outline the specific time-based requirements, such as minimum service periods, before an employee becomes eligible for options. Additionally, the template likely incorporates performance-based criteria, which define the performance metrics employees must meet to qualify for share options.
The document may also cover the process of granting, exercising, and vesting of share options, including any restrictions or limitations placed on the shares. It may detail the exercise price, number of shares available for allocation, and possibly the vesting schedule, indicating when employees can convert the options into actual shares.
Furthermore, the template will likely address tax implications, compliance with relevant laws, and any other legal considerations specific to UK legislation. It may include provisions to address the hypothetical scenarios of termination, resignation, or change of control, outlining what happens to the share options in such cases.
Overall, this legal template serves as a comprehensive guide for UK companies seeking to establish an Emi Share Option plan that rewards employees based on a combination of their service time and performance metrics.
The template likely sets out the terms and conditions of the share option plan, detailing the eligibility criteria for employees to participate. It may outline the specific time-based requirements, such as minimum service periods, before an employee becomes eligible for options. Additionally, the template likely incorporates performance-based criteria, which define the performance metrics employees must meet to qualify for share options.
The document may also cover the process of granting, exercising, and vesting of share options, including any restrictions or limitations placed on the shares. It may detail the exercise price, number of shares available for allocation, and possibly the vesting schedule, indicating when employees can convert the options into actual shares.
Furthermore, the template will likely address tax implications, compliance with relevant laws, and any other legal considerations specific to UK legislation. It may include provisions to address the hypothetical scenarios of termination, resignation, or change of control, outlining what happens to the share options in such cases.
Overall, this legal template serves as a comprehensive guide for UK companies seeking to establish an Emi Share Option plan that rewards employees based on a combination of their service time and performance metrics.
Read More
Publisher
Genie AIJurisdiction
England and WalesTEMPLATE
USED BY
11
RATINGS
4
DISCUSSIONS
2
Exit Only Emi Share Option (Stand-Alone)
The legal template "Exit Only Emi Share Option (Stand-Alone) under UK law" is a document specifically addressing the exit-only scenario related to Enterprise Management Incentive (EMI) share options, as per the legal framework set in the United Kingdom. The template likely offers a comprehensive set of clauses and provisions that cater to EMI share option arrangements, where employees are granted the right to exercise their allotted shares upon certain predefined exit events, such as a sale of the company or an IPO (Initial Public Offering).
This legal document serves as a guide, outlining the rights, responsibilities, and obligations of both the employer and the employee. It may cover the terms and conditions for exercising the exit-only EMI share options, including the vesting schedule, the pricing or valuation mechanism, and any specific performance criteria or milestones that must be achieved for the options to become eligible for exercise.
Additionally, the template could incorporate provisions concerning the protection of the company's interests, such as transfer restrictions, non-disclosure agreements, and non-compete clauses. It may also include details about the taxation implications and any required adjustments to accommodate changes in tax legislation. Furthermore, the document could outline the dispute resolution mechanisms, governing law, and jurisdiction applicable to the exit-only EMI share option agreement.
Overall, this legal template helps establish a clear, legally binding framework for exit-only EMI share options between employers and employees, ensuring that both parties understand their rights and obligations, and providing a basis for fair and transparent arrangements in accordance with UK laws and regulations.
This legal document serves as a guide, outlining the rights, responsibilities, and obligations of both the employer and the employee. It may cover the terms and conditions for exercising the exit-only EMI share options, including the vesting schedule, the pricing or valuation mechanism, and any specific performance criteria or milestones that must be achieved for the options to become eligible for exercise.
Additionally, the template could incorporate provisions concerning the protection of the company's interests, such as transfer restrictions, non-disclosure agreements, and non-compete clauses. It may also include details about the taxation implications and any required adjustments to accommodate changes in tax legislation. Furthermore, the document could outline the dispute resolution mechanisms, governing law, and jurisdiction applicable to the exit-only EMI share option agreement.
Overall, this legal template helps establish a clear, legally binding framework for exit-only EMI share options between employers and employees, ensuring that both parties understand their rights and obligations, and providing a basis for fair and transparent arrangements in accordance with UK laws and regulations.
Read More
Publisher
Genie AIJurisdiction
England and WalesTEMPLATE
USED BY
11
RATINGS
4
DISCUSSIONS
0
Simple Loan Agreement To Employee Benefit Trust (EBT)
This legal template is a document that outlines the terms and conditions of a simple loan agreement entered into between an employee benefit trust (EBT) and another party. The agreement is specifically designed to comply with UK law and governs the lending of funds by the EBT to the borrower.
The template would likely include standard sections such as the date and details of the agreement, the identities of the parties involved, loan amount and repayment terms, interest rate (if any), collateral or guarantees (if applicable), provisions for early repayment or default, and other relevant clauses to protect the interests of both parties.
The purpose of the loan agreement could vary, but generally, it would involve the EBT providing financial assistance to the borrower, which could be an employee or a related party. The loan might be utilized for personal reasons, such as home improvements, education, or emergency expenses, or for business purposes like start-up capital, investment, or debt consolidation.
As this template is specific to a loan agreement involving an EBT, it is likely that the provisions within the document would align with the specific regulations and guidelines governing EBTs in the UK. These might include compliance with tax laws, restrictions on the use of loan funds, reporting requirements, and any other legal obligations that the EBT needs to adhere to.
Overall, this legal template provides a standardized format for creating a loan agreement between an EBT and another party, ensuring clarity, fairness, and legal compliance in the lending process.
The template would likely include standard sections such as the date and details of the agreement, the identities of the parties involved, loan amount and repayment terms, interest rate (if any), collateral or guarantees (if applicable), provisions for early repayment or default, and other relevant clauses to protect the interests of both parties.
The purpose of the loan agreement could vary, but generally, it would involve the EBT providing financial assistance to the borrower, which could be an employee or a related party. The loan might be utilized for personal reasons, such as home improvements, education, or emergency expenses, or for business purposes like start-up capital, investment, or debt consolidation.
As this template is specific to a loan agreement involving an EBT, it is likely that the provisions within the document would align with the specific regulations and guidelines governing EBTs in the UK. These might include compliance with tax laws, restrictions on the use of loan funds, reporting requirements, and any other legal obligations that the EBT needs to adhere to.
Overall, this legal template provides a standardized format for creating a loan agreement between an EBT and another party, ensuring clarity, fairness, and legal compliance in the lending process.
Read More
Publisher
Genie AIJurisdiction
England and WalesTEMPLATE
USED BY
5
RATINGS
4
DISCUSSIONS
2
