The Convertible Equity Term Sheet serves as a crucial document in early-stage financing, particularly for startups seeking capital without immediate valuation determinations. This document type emerged as an alternative to convertible notes, offering investors equity-like rights without debt components. Used primarily in the United States, it must comply with SEC regulations and state securities laws. The term sheet typically precedes more detailed investment documents and outlines key terms including investment amount, valuation caps, conversion triggers, and investor rights. It's particularly valuable when companies want to defer valuation discussions while still providing investors with upside potential.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Your data doesn't train Genie's AI
You keep IP ownership of your docs
1. Parties: Identification of the company and investor(s)
2. Background: Brief description of the transaction and purpose
3. Definitions: Key terms used throughout the term sheet
4. Investment Amount: Total funding amount and payment terms
5. Company Valuation: Pre-money valuation or valuation cap
6. Conversion Rights: Terms and conditions for equity conversion
7. Investor Rights: Basic rights granted to investors
1. Pro-rata Rights: Right to maintain ownership percentage in future rounds - typically included for larger investors or strategic partners
2. Board Representation: Investor rights to board seats or observation rights - typically included for significant investments or lead investors
3. Information Rights: Investor access to company financial information - typically included for major investors
4. Transfer Restrictions: Limitations on transfer of conversion rights - included when company wants to control secondary transfers
5. Most Favored Nation: Protection against better terms given to future investors - typically included in early-stage investments
1. Cap Table: Current capitalization of the company
2. Pro Forma Cap Table: Post-conversion capitalization scenario
3. Investor Questionnaire: Accredited investor verification form
4. Use of Proceeds: Planned allocation of investment funds
Find the exact document you need
Money Market Repurchase Agreement
U.S.-governed agreement for short-term secured lending through securities sale and repurchase transactions.
Download
Investment Club LLC Operating Agreement
A U.S. legal document establishing the governance structure and operating rules for an investment club organized as an LLC.
Download
Family Investment LLC Operating Agreement
A U.S.-governed legal agreement establishing the structure and operations of a family-owned LLC for investment purposes.
Download
Term Sheet Venture Capital
A non-binding document under U.S. law that outlines key terms for venture capital investment, serving as a blueprint for final documentation.
Download
Rental Property LLC Operating Agreement
A US-compliant legal document establishing the structure and operations of an LLC focused on rental property management.
Download
Investment Agreement Letter
A legally binding document under US law that outlines the terms and conditions of an investment commitment between an investor and a company.
Download
Silent Partner Investment Contract
A U.S.-governed agreement establishing terms between a silent investor and business operator in a limited partnership structure.
Download
Real Estate Equity Purchase Agreement
A U.S.-compliant legal agreement for the purchase and sale of real property, outlining transaction terms and conditions.
Download
LLC Operating Agreement With Investors
A U.S. legal document governing the relationship between LLC members and investors, establishing rights, responsibilities, and operational framework.
Download
LLC Investment Term Sheet
A U.S.-governed preliminary document outlining key terms and conditions for investing in an LLC.
Download
Real Estate Syndication Operating Agreement
A U.S.-governed agreement establishing the framework for real estate investment partnerships between sponsors and passive investors.
Download
Stock Borrowing And Lending Agreement
A U.S.-governed agreement establishing terms for securities lending between parties, compliant with SEC and FINRA regulations.
Download
Real Estate Private Equity Term Sheet
A U.S.-governed preliminary document outlining key terms and conditions for investment in a real estate private equity fund.
Download
Private Equity General Partner Agreement
A U.S.-governed agreement establishing the relationship between a private equity fund's general partner and the fund, including management and economic terms.
Download
Private Equity Fund Agreement
A U.S.-governed agreement establishing the terms and structure of a private equity fund, including investor rights, management obligations, and profit-sharing arrangements.
Download
Letter Of Intent To Purchase Stock
A preliminary document used in the U.S. that outlines the intended terms for a stock purchase transaction.
Download
Hedge Fund Limited Partnership Agreement
A U.S.-governed agreement establishing a hedge fund as a limited partnership, defining investor rights, management responsibilities, and operational terms.
Download
Investment Club Operating Agreement
A U.S.-governed agreement establishing the structure and rules for an investment club's operations and member relationships.
Download
Hedge Fund Subscription Agreement
A U.S.-governed legal agreement documenting an investor's subscription to a hedge fund, subject to federal securities laws and regulations.
Download
Simple Agreement For Future Equity Term Sheet
A U.S.-governed term sheet outlining key terms for a SAFE investment instrument used in early-stage startup financing.
Download
Convertible Equity Term Sheet
A U.S.-compliant preliminary agreement outlining terms for convertible equity investment in a company.
Download
Real Estate Holding Company Operating Agreement
A U.S.-governed legal agreement establishing the operational framework for a real estate holding LLC, defining member rights, management structure, and profit distribution.
Download
LLC Share Purchase Agreement
A U.S.-governed agreement for the purchase and sale of LLC membership interests, detailing transfer terms and conditions.
Download
Investment LLC Operating Agreement
A U.S.-governed legal agreement establishing the operational framework for an investment-focused Limited Liability Company.
Download
Real Estate Partnership Agreements
A U.S.-governed agreement establishing terms and conditions for real estate partnerships, including partner rights, responsibilities, and operational framework.
Download
Capital Raising Mandate Agreement
A U.S.-governed agreement appointing a financial advisor to raise capital, subject to federal and state securities laws.
Download
Share Investment Agreement
A U.S.-governed legal agreement documenting the terms and conditions of a share investment in a company, subject to federal and state securities laws.
Download
Movie Investment Contract
A U.S.-governed legal agreement establishing terms for financial investment in film projects, subject to federal and state securities laws.
Download
Stock Contribution Agreement
A U.S.-governed agreement documenting the transfer of shares from a contributor to a receiving entity, ensuring compliance with securities laws and protecting parties' interests.
Download
Preference Shares Investment Agreement
A U.S.-governed agreement establishing terms for investment in company preferred stock, including shareholder rights and regulatory compliance.
Download
Personal Investment Contract
A U.S.-governed agreement establishing terms between an individual investor and investment manager, compliant with federal and state securities laws.
Download
Rental Property Partnership Agreement
A U.S.-governed agreement establishing a partnership for rental property investment and management, defining partner rights, responsibilities, and operational procedures.
Download
Wholesale Real Estate Purchase Agreement
U.S.-compliant agreement for wholesale real estate transactions enabling property purchase and subsequent contract assignment.
Download
Stock Purchase Agreement Term Sheet
A preliminary document outlining key terms for stock purchase and sale under U.S. securities laws.
Download
Equity Shares Agreement
A U.S.-governed agreement establishing terms and conditions for company share ownership, subject to federal and state securities laws.
Download
Designated Investment Agreement
A U.S.-governed agreement establishing terms for managing designated investment assets under federal and state securities laws.
Download
Term Sheet For Investors
A non-binding document outlining key investment terms and conditions under U.S. securities laws.
Download
Placement Agent Agreement Private Equity Fund
A U.S.-governed agreement establishing terms for placement agent services in private equity fund capital raising.
Download
Limited Partnership Agreement Venture Capital
A U.S.-governed agreement establishing a venture capital fund's structure, management, and operation as a limited partnership.
Download
Short Term Investment Agreement
A U.S.-governed agreement establishing terms and conditions for short-term investments, compliant with federal and state securities laws.
Download
łŇ±đ˛Ôľ±±đ’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; łŇ±đ˛Ôľ±±đ’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it