Texas Angel Fund Promissory Note Term Sheet

• Category: Small Business - Investment or Funding
• State: Multi-State
• Control #: US-ENTREP-004-2
• 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 Texas Angel Fund Promissory Note Term Sheet is a legal document that outlines the terms and conditions of a loan agreement between the Texas Angel Fund and a borrower. It serves as a summary of the key provisions of the loan, providing both parties with a clear understanding of their rights and obligations. Keywords: Texas Angel Fund, promissory note, term sheet, loan agreement, borrower, terms and conditions, legal document, loan provisions, rights, obligations. There are different types of Texas Angel Fund Promissory Note Term Sheets, each tailored to specific lending scenarios. Some of these variations include: 1. Convertible Promissory Note Term Sheet: This type of term sheet is designed for cases where the loan can be converted into equity at a later stage, usually upon the occurrence of certain events such as the borrower's successful fundraising round. 2. Secured Promissory Note Term Sheet: This term sheet is used when the loan is secured by collateral, which can be any valuable asset pledged by the borrower to secure the repayment of the loan. It outlines the specifics of the collateral, its valuation, and the rights of the lender in case of default. 3. Unsecured Promissory Note Term Sheet: Unlike the secured term sheet, an unsecured promissory note does not require any collateral to secure the loan. This type of term sheet outlines the terms and conditions of the loan without any reference to collateral or security. 4. Balloon Promissory Note Term Sheet: A balloon promissory note term sheet specifies that the borrower will make regular installment payments for a certain period of time, followed by a larger "balloon payment" at the end of the term. This type of term sheet is often used when the borrower anticipates a significant cash flow increase in the future. 5. Revolving Promissory Note Term Sheet: A revolving promissory note term sheet is used when the lender agrees to provide a line of credit to the borrower, with the borrower having the flexibility to borrow and repay funds as needed, up to a predetermined limit. This type of term sheet outlines the conditions for borrowing, repayment, and interest calculation. By offering various types of term sheets, the Texas Angel Fund caters to different lending scenarios, ensuring that borrowers receive loans that best suit their needs, while also protecting the interests of the lender.

The Texas Angel Fund Promissory Note Term Sheet is a legal document that outlines the terms and conditions of a loan agreement between the Texas Angel Fund and a borrower. It serves as a summary of the key provisions of the loan, providing both parties with a clear understanding of their rights and obligations. Keywords: Texas Angel Fund, promissory note, term sheet, loan agreement, borrower, terms and conditions, legal document, loan provisions, rights, obligations. There are different types of Texas Angel Fund Promissory Note Term Sheets, each tailored to specific lending scenarios. Some of these variations include: 1. Convertible Promissory Note Term Sheet: This type of term sheet is designed for cases where the loan can be converted into equity at a later stage, usually upon the occurrence of certain events such as the borrower's successful fundraising round. 2. Secured Promissory Note Term Sheet: This term sheet is used when the loan is secured by collateral, which can be any valuable asset pledged by the borrower to secure the repayment of the loan. It outlines the specifics of the collateral, its valuation, and the rights of the lender in case of default. 3. Unsecured Promissory Note Term Sheet: Unlike the secured term sheet, an unsecured promissory note does not require any collateral to secure the loan. This type of term sheet outlines the terms and conditions of the loan without any reference to collateral or security. 4. Balloon Promissory Note Term Sheet: A balloon promissory note term sheet specifies that the borrower will make regular installment payments for a certain period of time, followed by a larger "balloon payment" at the end of the term. This type of term sheet is often used when the borrower anticipates a significant cash flow increase in the future. 5. Revolving Promissory Note Term Sheet: A revolving promissory note term sheet is used when the lender agrees to provide a line of credit to the borrower, with the borrower having the flexibility to borrow and repay funds as needed, up to a predetermined limit. This type of term sheet outlines the conditions for borrowing, repayment, and interest calculation. By offering various types of term sheets, the Texas Angel Fund caters to different lending scenarios, ensuring that borrowers receive loans that best suit their needs, while also protecting the interests of the lender.