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
Letter And Debrief To Unsuccessful Supplier (Notify Result of Procurement)
The legal template titled "Letter And Debrief To Unsuccessful Supplier (Notify Result of Procurement) under UK law" is a document that outlines the communication protocol and guidelines for informing an unsuccessful supplier about the outcome of a procurement process.
Under UK law, this template serves as a formal letter that notifies the supplier who participated in a procurement exercise that their bid or proposal has been unsuccessful. The purpose of this template is to provide transparency and clarity regarding the decision-making process and to offer the unsuccessful supplier an opportunity to receive feedback and a debriefing on their bid.
The letter typically includes the identification of the procurement project, the name of the supplier, and a clear statement informing them that their bid has not been successful. It may also briefly mention the reasons for the decision, such as the evaluation criteria that led to the selection of another supplier. This template often emphasizes that the decision is final and cannot be appealed unless specific legal or procedural requirements have been violated.
Additionally, the template contains a section dedicated to offering the unsuccessful supplier a debriefing meeting. The purpose of this meeting is to provide the supplier with constructive feedback and insights into their bid's strengths and weaknesses. The template may include scheduling options for the debriefing meeting, as well as details about the process that will be followed during the session.
Overall, this legal template aims to ensure compliance with UK law regarding procurement processes and to maintain transparency and fairness in the communication with unsuccessful suppliers. It serves as a formal notification letter while also extending an opportunity for further understanding and improvement for suppliers who may want to enhance their future bids.
Under UK law, this template serves as a formal letter that notifies the supplier who participated in a procurement exercise that their bid or proposal has been unsuccessful. The purpose of this template is to provide transparency and clarity regarding the decision-making process and to offer the unsuccessful supplier an opportunity to receive feedback and a debriefing on their bid.
The letter typically includes the identification of the procurement project, the name of the supplier, and a clear statement informing them that their bid has not been successful. It may also briefly mention the reasons for the decision, such as the evaluation criteria that led to the selection of another supplier. This template often emphasizes that the decision is final and cannot be appealed unless specific legal or procedural requirements have been violated.
Additionally, the template contains a section dedicated to offering the unsuccessful supplier a debriefing meeting. The purpose of this meeting is to provide the supplier with constructive feedback and insights into their bid's strengths and weaknesses. The template may include scheduling options for the debriefing meeting, as well as details about the process that will be followed during the session.
Overall, this legal template aims to ensure compliance with UK law regarding procurement processes and to maintain transparency and fairness in the communication with unsuccessful suppliers. It serves as a formal notification letter while also extending an opportunity for further understanding and improvement for suppliers who may want to enhance their future bids.
Read More
Publisher
Genie AIJurisdiction
England and WalesTEMPLATE
USED BY
11
RATINGS
2
DISCUSSIONS
3
Letter To Notify Supplier Standstill Period Complete (Without Challenge)
This legal template is designed to aid in the drafting of a letter to notify a supplier that the standstill period, without any untoward challenges, under UK law has come to an end. In the context of public procurement, a standstill period refers to the period of time between the notification of a contract award decision and the formal signing of the contract. During this standstill period, unsuccessful bidders have the opportunity to challenge the award decision if they believe it was made unfairly or in breach of procurement regulations. However, if the standstill period passes without any legal challenges being raised by unsuccessful bidders, the buyer can proceed with the signing of the contract. This template letter serves as a formal notification to the supplier that the standstill period has been completed without any such challenges, thereby confirming their successful bid and allowing for the finalization of the contractual agreement.
Read More
Publisher
Genie AIJurisdiction
England and WalesTEMPLATE
USED BY
5
RATINGS
2
DISCUSSIONS
0
Section 138A Election Letter (Business Asset Disposal Relief And Earn Outs)
The Section 138A Election Letter (Business Asset Disposal Relief And Earn Outs) under UK law is a legal document that pertains to the sale or disposal of business assets. It outlines the electing party's intention to utilize the Business Asset Disposal Relief (previously known as Entrepreneur's Relief) in conjunction with earn outs, a financial arrangement where the buyer pays the seller in installments based on the business's future performance.
This template serves as a formal letter, indicating the electing party's decision to elect the section 138A provisions as per the UK tax legislation. It includes specific details related to the relevant transaction, such as the parties involved, the nature and value of the assets being disposed of, and the proposed earn-out structure.
Furthermore, the template may include clauses that address essential provisions and conditions for the utilization of Business Asset Disposal Relief and earn outs. This may cover aspects like the calculation and payment terms of the earn-out, obligations and responsibilities of both parties, dispute resolution mechanisms, and any necessary consents or waivers required.
By using this template, the parties involved can document their intentions in a legally binding manner, ensuring compliance with the UK tax regulations and providing transparency and clarity regarding the sale or disposal of business assets. It enables the electing party and relevant stakeholders to structure their transaction efficiently, taking advantage of applicable tax relief and providing a clear framework for earn-out arrangements.
This template serves as a formal letter, indicating the electing party's decision to elect the section 138A provisions as per the UK tax legislation. It includes specific details related to the relevant transaction, such as the parties involved, the nature and value of the assets being disposed of, and the proposed earn-out structure.
Furthermore, the template may include clauses that address essential provisions and conditions for the utilization of Business Asset Disposal Relief and earn outs. This may cover aspects like the calculation and payment terms of the earn-out, obligations and responsibilities of both parties, dispute resolution mechanisms, and any necessary consents or waivers required.
By using this template, the parties involved can document their intentions in a legally binding manner, ensuring compliance with the UK tax regulations and providing transparency and clarity regarding the sale or disposal of business assets. It enables the electing party and relevant stakeholders to structure their transaction efficiently, taking advantage of applicable tax relief and providing a clear framework for earn-out arrangements.
Read More
Publisher
Genie AIJurisdiction
England and WalesTEMPLATE
USED BY
6
RATINGS
2
DISCUSSIONS
1
