Los Angeles California Angel Fund Promissory Note Term Sheet

• Category: Small Business - Investment or Funding
• State: Multi-State
• County: Los Angeles
• 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. Los Angeles, California Angel Fund Promissory Note Term Sheet The Los Angeles, California Angel Fund Promissory Note Term Sheet is a legal document that outlines the terms and conditions of a loan agreement between an angel fund investor and a borrower in Los Angeles, California. This term sheet serves as a prelude to the formal loan agreement and covers various aspects of the loan, including interest rates, repayment terms, and default clauses. Keywords: Los Angeles, California, Angel Fund, Promissory Note, Term Sheet, loan agreement, investor, borrower, interest rates, repayment terms, default clauses. Different Types of Los Angeles, California Angel Fund Promissory Note Term Sheets: 1. Secured Promissory Note Term Sheet: This type of term sheet specifies that the loan is secured by collateral. In case of default, the lender has the right to seize the collateral as a form of repayment. 2. Unsecured Promissory Note Term Sheet: Unlike the secured term sheet, this type does not require collateral. Instead, the borrower provides a personal guarantee to repay the loan, making it riskier for the lender. 3. Convertible Promissory Note Term Sheet: This term sheet includes a provision that allows the loan to convert into equity or stock in the borrower's company at a later date, typically during a future funding round. 4. Simple Promissory Note Term Sheet: This is a straightforward term sheet that outlines the basic terms of the loan, including interest rates, repayment schedule, and default provisions. 5. Bridge Loan Promissory Note Term Sheet: Bridge loans are generally short-term loans provided by angel investors to bridge the gap between two significant financing events. The term sheet for this type of loan outlines the specific terms and conditions associated with the bridge financing. 6. Mezzanine Loan Promissory Note Term Sheet: Mezzanine loans serve as a form of financing that falls between traditional bank loans and equity investment. The term sheet for a mezzanine loan contains details regarding interest rates, repayment terms, and potential equity conversion options. These different types of Los Angeles, California Angel Fund Promissory Note Term Sheets provide flexibility and options for both borrowers and investors based on their unique financial circumstances and risk preferences. It is essential for all parties involved to thoroughly review and negotiate the terms outlined in the term sheet before proceeding with the formal loan agreement.

Los Angeles, California Angel Fund Promissory Note Term Sheet The Los Angeles, California Angel Fund Promissory Note Term Sheet is a legal document that outlines the terms and conditions of a loan agreement between an angel fund investor and a borrower in Los Angeles, California. This term sheet serves as a prelude to the formal loan agreement and covers various aspects of the loan, including interest rates, repayment terms, and default clauses. Keywords: Los Angeles, California, Angel Fund, Promissory Note, Term Sheet, loan agreement, investor, borrower, interest rates, repayment terms, default clauses. Different Types of Los Angeles, California Angel Fund Promissory Note Term Sheets: 1. Secured Promissory Note Term Sheet: This type of term sheet specifies that the loan is secured by collateral. In case of default, the lender has the right to seize the collateral as a form of repayment. 2. Unsecured Promissory Note Term Sheet: Unlike the secured term sheet, this type does not require collateral. Instead, the borrower provides a personal guarantee to repay the loan, making it riskier for the lender. 3. Convertible Promissory Note Term Sheet: This term sheet includes a provision that allows the loan to convert into equity or stock in the borrower's company at a later date, typically during a future funding round. 4. Simple Promissory Note Term Sheet: This is a straightforward term sheet that outlines the basic terms of the loan, including interest rates, repayment schedule, and default provisions. 5. Bridge Loan Promissory Note Term Sheet: Bridge loans are generally short-term loans provided by angel investors to bridge the gap between two significant financing events. The term sheet for this type of loan outlines the specific terms and conditions associated with the bridge financing. 6. Mezzanine Loan Promissory Note Term Sheet: Mezzanine loans serve as a form of financing that falls between traditional bank loans and equity investment. The term sheet for a mezzanine loan contains details regarding interest rates, repayment terms, and potential equity conversion options. These different types of Los Angeles, California Angel Fund Promissory Note Term Sheets provide flexibility and options for both borrowers and investors based on their unique financial circumstances and risk preferences. It is essential for all parties involved to thoroughly review and negotiate the terms outlined in the term sheet before proceeding with the formal loan agreement.