Indiana Angel Fund Promissory Note Term Sheet

• Category: Small Business - Investment or Funding
• State: Multi-State
• Control #: US-ENTREP-004-1
• Format: Word; Rich Text

Description

An angel investor or angel (also known as a business angel or informal investor) is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. New start-up companies often turn to the private equity market for seed money because the formal equity market is reluctant to fund risky undertakings. In addition to their willingness to invest in a start-up, angel investors may bring other assets to the partnership. They are often a source of encouragement; they may be mentors in how best to guide a new business through the start-up phase and they are often willing to do this while staying out of the day-to-day management of the business.
Term sheet is a non-binding agreement setting forth the basic terms and conditions under which an investment will be made.

The Indiana Angel Fund Promissory Note Term Sheet is a comprehensive document that outlines the terms and conditions associated with the investment provided by the Indiana Angel Fund to entrepreneurs and start-up companies in Indiana. This term sheet is a crucial component of the investment process, as it serves as a preliminary agreement between both parties and lays the foundation for the promissory note that will be executed later. The Indiana Angel Fund is a state-based investment fund that provides funding and support to local businesses and entrepreneurs to foster economic growth and innovation within Indiana. They offer various investment vehicles, including convertible notes, equity investments, and grants, tailored to meet the specific needs of the start-up community. The Indiana Angel Fund Promissory Note Term Sheet outlines essential aspects of the investment agreement, including the principal amount to be invested, the interest rate charged, and the maturity date of the promissory note. It also provides information on any collateral or security that may be required to secure the investment, ensuring the fund's protection. Moreover, the term sheet may specify if the investment includes any additional conditions, such as milestone achievements or performance-based metrics, that the start-up must meet to comply with the terms of the investment. These conditions serve as a way to align the goals and expectations of both the fund and the start-up, ensuring a mutually beneficial relationship. While there might not be specific types of Indiana Angel Fund Promissory Note Term Sheets, the content and terms outlined within the sheet can vary depending on the nature of the investment. For instance, a term sheet for a convertible note investment will include provisions related to the conversion of the debt into equity at a later stage, whereas an equity investment term sheet will focus on the company's valuation and ownership structure. In conclusion, the Indiana Angel Fund Promissory Note Term Sheet is a critical document that outlines the terms and conditions associated with the investment provided by the Indiana Angel Fund. It serves as a preliminary agreement between both parties and sets the foundation for the promissory note that will be executed in the future, ensuring clarity and transparency throughout the investment process.