Oregon 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 Oregon Angel Fund Promissory Note Term Sheet is a significant document used by the Oregon Angel Fund (OAF) to outline the terms and conditions of its investment in early-stage companies. This term sheet serves as an agreement between the OAF and the recipient company, detailing the various aspects of the investment. The term sheet contains several key sections, each addressing specific aspects of the investment agreement. It includes the basic information about the recipient company, such as its legal name, headquarters, and key contact details. Furthermore, it outlines the terms related to the funding, including the amount of the investment, the pre-money valuation, and the equity percentage the OAF will receive in return. Additionally, the term sheet describes the repayment terms and conditions associated with the promissory note. It specifies the interest rate, maturity date, repayment schedule, and any potential penalties or default provisions. This section ensures both parties have a clear understanding of the financial obligations and expectations. Furthermore, the term sheet may also address various additional provisions and requirements. These may include board representation, information rights, intellectual property rights, and pro rata rights in future financing rounds. Each of these provisions protects the interests of both the OAF and the recipient company, ensuring a fair and beneficial partnership. It's important to note that while there may not be different types of Oregon Angel Fund Promissory Note Term Sheets, each agreement is customized based on the specific investment opportunity and the mutual interests of the OAF and the recipient company. This customization ensures that the term sheet aligns with the needs and objectives of both parties, creating a strong foundation for a successful investment partnership. Overall, the Oregon Angel Fund Promissory Note Term Sheet is a comprehensive document that outlines the terms, conditions, and expectations of the investment made by the OAF in early-stage companies. It provides clarity, protection, and a framework for collaboration, empowering both the OAF and the recipient company to achieve their goals.