San Jose California Angel Fund Promissory Note Term Sheet

• Category: Small Business - Investment or Funding
• State: Multi-State
• City: San Jose
• 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. San Jose California Angel Fund Promissory Note Term Sheet is a legal document that outlines the terms and conditions of a financial agreement between an angel fund and a borrower in San Jose, California. This term sheet sets the foundation for the promissory note, which is a written promise to repay a loan. The San Jose California Angel Fund Promissory Note Term Sheet contains key information such as the borrowed amount, interest rate, repayment terms, and any applicable fees. It serves as a preliminary agreement before drafting the final promissory note, protecting both parties involved by providing clarity and direction. Keywords: San Jose, California, Angel Fund, Promissory Note, Term Sheet, financial agreement, borrower, legal document, loan, interest rate, repayment terms, fees, preliminary agreement, clarity, direction. There may be different types of San Jose California Angel Fund Promissory Note Term Sheets based on specific requirements or circumstances. Some variations include: 1. Convertible Promissory Note Term Sheet: This type of term sheet outlines the terms and conditions for a convertible loan, which allows the angel fund to convert the loan into equity in the borrower's company at a later date. 2. Secured Promissory Note Term Sheet: In this case, the term sheet would include provisions regarding collateral that the borrower pledges as security for the loan. It outlines the rights of the angel fund in case of default or non-repayment. 3. Unsecured Promissory Note Term Sheet: Unlike a secured promissory note, this term sheet does not involve collateral. Therefore, it may include additional terms such as personal guarantees or stricter repayment conditions. 4. Bridge Loan Promissory Note Term Sheet: This term sheet is designed for short-term financing needs. It outlines the intention to bridge a financial gap until the borrower secures long-term financing. 5. Demand Promissory Note Term Sheet: This type of term sheet specifies that the angel fund has the right to demand repayment of the loan at any time, creating flexibility for both parties involved. Keywords: Convertible Promissory Note, Secured Promissory Note, Unsecured Promissory Note, Bridge Loan Promissory Note, Demand Promissory Note.

San Jose California Angel Fund Promissory Note Term Sheet is a legal document that outlines the terms and conditions of a financial agreement between an angel fund and a borrower in San Jose, California. This term sheet sets the foundation for the promissory note, which is a written promise to repay a loan. The San Jose California Angel Fund Promissory Note Term Sheet contains key information such as the borrowed amount, interest rate, repayment terms, and any applicable fees. It serves as a preliminary agreement before drafting the final promissory note, protecting both parties involved by providing clarity and direction. Keywords: San Jose, California, Angel Fund, Promissory Note, Term Sheet, financial agreement, borrower, legal document, loan, interest rate, repayment terms, fees, preliminary agreement, clarity, direction. There may be different types of San Jose California Angel Fund Promissory Note Term Sheets based on specific requirements or circumstances. Some variations include: 1. Convertible Promissory Note Term Sheet: This type of term sheet outlines the terms and conditions for a convertible loan, which allows the angel fund to convert the loan into equity in the borrower's company at a later date. 2. Secured Promissory Note Term Sheet: In this case, the term sheet would include provisions regarding collateral that the borrower pledges as security for the loan. It outlines the rights of the angel fund in case of default or non-repayment. 3. Unsecured Promissory Note Term Sheet: Unlike a secured promissory note, this term sheet does not involve collateral. Therefore, it may include additional terms such as personal guarantees or stricter repayment conditions. 4. Bridge Loan Promissory Note Term Sheet: This term sheet is designed for short-term financing needs. It outlines the intention to bridge a financial gap until the borrower secures long-term financing. 5. Demand Promissory Note Term Sheet: This type of term sheet specifies that the angel fund has the right to demand repayment of the loan at any time, creating flexibility for both parties involved. Keywords: Convertible Promissory Note, Secured Promissory Note, Unsecured Promissory Note, Bridge Loan Promissory Note, Demand Promissory Note.