Philadelphia Pennsylvania Angel Fund Promissory Note Term Sheet

• Category: Small Business - Investment or Funding
• State: Multi-State
• County: Philadelphia
• 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. A Philadelphia Pennsylvania Angel Fund Promissory Note Term Sheet is a legal document that outlines the terms and conditions agreed upon between an angel fund and a borrower for a loan. This term sheet serves as a precursor to the final agreement and provides an overview of the key provisions and obligations involved in the borrowing process. Key terms covered in the Philadelphia Pennsylvania Angel Fund Promissory Note Term Sheet may include: 1. Loan Amount: The principal amount being borrowed by the borrower from the angel fund. 2. Interest Rate: The percentage at which interest will be charged on the borrowed amount. 3. Repayment Terms: The timeframe within which the borrower is required to repay the loan. 4. Payment Schedule: The agreed-upon frequency and amount of loan repayments. 5. Default Provisions: The consequences and remedies in case of non-payment or breach of terms by the borrower. 6. Conversion Terms: If the angel fund has the option to convert the loan into equity in the borrower's company. 7. Maturity Date: The final date by which the borrower must repay the full loan amount. 8. Events of Default: A list of circumstances that will be considered as default, triggering penalties or legal actions. 9. Collateral: Any assets or guarantees pledged by the borrower as security for the loan. 10. Governing Law: The jurisdiction under which the agreement and any disputes will be governed. Different types of Philadelphia Pennsylvania Angel Fund Promissory Note Term Sheets may vary based on the specific requirements of the angel fund or the borrower. These can include variations in interest rates, repayment terms, collateral requirements, or other terms that align with the nature of the investment or sector-specific considerations. It is essential for both parties involved to carefully review and negotiate the terms of the Philadelphia Pennsylvania Angel Fund Promissory Note Term Sheet before proceeding with the loan, as it forms the foundation for the eventual agreement. Seeking legal advice or assistance is advised to ensure compliance with local regulations and to protect the rights and interests of both the angel fund and the borrower.

A Philadelphia Pennsylvania Angel Fund Promissory Note Term Sheet is a legal document that outlines the terms and conditions agreed upon between an angel fund and a borrower for a loan. This term sheet serves as a precursor to the final agreement and provides an overview of the key provisions and obligations involved in the borrowing process. Key terms covered in the Philadelphia Pennsylvania Angel Fund Promissory Note Term Sheet may include: 1. Loan Amount: The principal amount being borrowed by the borrower from the angel fund. 2. Interest Rate: The percentage at which interest will be charged on the borrowed amount. 3. Repayment Terms: The timeframe within which the borrower is required to repay the loan. 4. Payment Schedule: The agreed-upon frequency and amount of loan repayments. 5. Default Provisions: The consequences and remedies in case of non-payment or breach of terms by the borrower. 6. Conversion Terms: If the angel fund has the option to convert the loan into equity in the borrower's company. 7. Maturity Date: The final date by which the borrower must repay the full loan amount. 8. Events of Default: A list of circumstances that will be considered as default, triggering penalties or legal actions. 9. Collateral: Any assets or guarantees pledged by the borrower as security for the loan. 10. Governing Law: The jurisdiction under which the agreement and any disputes will be governed. Different types of Philadelphia Pennsylvania Angel Fund Promissory Note Term Sheets may vary based on the specific requirements of the angel fund or the borrower. These can include variations in interest rates, repayment terms, collateral requirements, or other terms that align with the nature of the investment or sector-specific considerations. It is essential for both parties involved to carefully review and negotiate the terms of the Philadelphia Pennsylvania Angel Fund Promissory Note Term Sheet before proceeding with the loan, as it forms the foundation for the eventual agreement. Seeking legal advice or assistance is advised to ensure compliance with local regulations and to protect the rights and interests of both the angel fund and the borrower.