North Carolina 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 North Carolina Angel Fund Promissory Note Term Sheet is a legally binding document that outlines the terms and conditions of a loan provided by the North Carolina Angel Fund to an entrepreneur or start-up located within the state of North Carolina. This term sheet serves as a prelude to the promissory note, which formalizes the loan agreement. The term sheet contains crucial details that both parties must agree upon before advancing to the formalization stage. It includes essential information such as the loan amount, the interest rate, repayment terms, and default provisions. By incorporating the following relevant keywords, a comprehensive description of the North Carolina Angel Fund Promissory Note Term Sheet can be generated: 1. North Carolina Angel Fund: The North Carolina Angel Fund is a private investment group that provides capital and support to early-stage businesses within the state. It aims to foster entrepreneurship and innovation while contributing to the economic growth of North Carolina. 2. Promissory Note: A promissory note is a legal document that outlines the borrower's promise to repay a loan along with specific terms and conditions. 3. Term Sheet: A term sheet is a preliminary agreement that outlines the essential terms and conditions of a potential investment. It acts as a guidepost for further negotiations and serves as a framework for the formal loan agreement. 4. Loan Amount: The loan amount refers to the specific sum of money that a start-up or entrepreneur receives from the North Carolina Angel Fund. The term sheet states this amount, which may vary based on the needs and financial health of the borrower. 5. Interest Rate: The interest rate is the percentage charged by the North Carolina Angel Fund for the borrowed amount. The term sheet specifies the interest rate, which may be fixed or variable, influencing the total interest payments made by the borrower. 6. Repayment Terms: The repayment terms dictate how and when the borrower must repay the loan. It defines the duration of the loan and the frequency of repayments, ensuring clarity for both parties involved. 7. Default Provisions: Default provisions describe the circumstances under which a borrower would be considered in default of the loan agreement, such as missing scheduled payments or breaching other contract terms. The term sheet outlines these provisions, including any penalties or consequences for defaulting. It is important to note that there might be different types of North Carolina Angel Fund Promissory Note Term Sheets depending on the specific needs, risk factors, or agreement structures. For instance, there could be term sheets tailored for different industries, loan amounts, or repayment schedules. The North Carolina Angel Fund may have additional term sheets for specific programs or initiatives they offer, providing entrepreneurs with tailored financing solutions. In conclusion, the North Carolina Angel Fund Promissory Note Term Sheet is a vital document that lays out the terms and conditions of a loan provided by the North Carolina Angel Fund to businesses within the state. Through clear communication and agreement on various aspects such as loan amount, interest rate, repayment terms, and default provisions, this term sheet establishes a foundation for a mutually beneficial agreement between the parties involved.