Harris Texas Angel Fund Promissory Note Term Sheet

• Category: Small Business - Investment or Funding
• State: Multi-State
• County: Harris
• 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 Harris Texas Angel Fund Promissory Note Term Sheet serves as a crucial document that outlines the terms and conditions of a financial agreement between investors and entrepreneurs in Harris County, Texas. This term sheet acts as a precursor to the promissory note, providing a comprehensive overview of the agreement's key provisions. Keywords: Harris Texas Angel Fund, Promissory Note, Term Sheet, investors, entrepreneurs, financial agreement, Harris County, Texas. There are different types of Harris Texas Angel Fund Promissory Note Term Sheets, each catering to specific investment scenarios. These variations include: 1. Convertible Note Term Sheet: This type of term sheet typically pertains to convertible notes, which are debt instruments that can be converted into equity at a later stage. The Harris Texas Angel Fund Convertible Note Term Sheet outlines the terms of the loan, conversion rights, interest rates, maturity dates, and any additional provisions related to the conversion. 2. Secured Promissory Note Term Sheet: When investors seek collateral for their investment, a secured promissory note is used. The term sheet for this type of agreement will include details regarding the collateral provided, such as property or assets, and the terms for releasing the collateral upon repayment. 3. Unsecured Promissory Note Term Sheet: An unsecured promissory note does not involve collateral. In this scenario, the term sheet focuses on the terms of the loan, interest rates, payment schedule, default clauses, and any specific provisions agreed upon by the parties involved. 4. Bridge Loan Term Sheet: A bridge loan is a short-term financing option that "bridges" the gap between immediate financial needs and a long-term solution. The term sheet for a bridge loan from the Harris Texas Angel Fund will outline the loan amount, interest rates, maturity dates, repayment terms, and any provisions specific to the agreement. 5. Participating Promissory Note Term Sheet: Participating promissory notes allow investors to receive a percentage of the company's profits or equity, in addition to the principal and interest repayments. The term sheet for this type of promissory note will establish the participation rights, profit-sharing arrangements, conversion rights (if applicable), and other relevant terms. By utilizing a Harris Texas Angel Fund Promissory Note Term Sheet, investors and entrepreneurs can ensure transparency, clarity, and a solid foundation for their financial agreements.