Hillsborough Florida Angel Fund Promissory Note Term Sheet

• Category: Small Business - Investment or Funding
• State: Multi-State
• County: Hillsborough
• 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 Hillsborough Florida Angel Fund Promissory Note Term Sheet is a document that outlines the terms and conditions associated with an investment agreement between the Hillsborough Florida Angel Fund and a borrower seeking financial support. This term sheet serves as a preliminary agreement before the finalization of the promissory note, which is a legal document acknowledging a debt owed by the borrower. Here are some important keywords related to the Hillsborough Florida Angel Fund Promissory Note Term Sheet: 1. Hillsborough Florida Angel Fund: This refers to an organization in Hillsborough County, Florida, providing financial support and investment opportunities to startups or small businesses within the area. 2. Promissory Note: This legal document establishes a promise by the borrower to repay a specific amount of money to the lender within a defined period, usually with specified interest rates and terms. 3. Term Sheet: The term sheet is a non-binding document that summarizes the proposed terms and conditions of the investment agreement between the Hillsborough Florida Angel Fund and the borrower. 4. Investment Agreement: This outlines the agreement between the Hillsborough Florida Angel Fund and the borrower, specifying the terms of the investment and the obligations of both parties. 5. Borrower: The individual or entity seeking financial assistance from the Hillsborough Florida Angel Fund. 6. Investor: The Hillsborough Florida Angel Fund or the individuals associated with the fund providing the financial support. 7. Financial Support: The funding or investment provided by the Hillsborough Florida Angel Fund to the borrower to support their startup or small business. Different types of Hillsborough Florida Angel Fund Promissory Note Term Sheets include: 1. Convertible Promissory Note Term Sheet: This type of term sheet includes provisions for the possibility of converting the loan into equity in the borrower's company in the future. 2. Secured Promissory Note Term Sheet: This term sheet specifies that the borrower must provide collateral, such as assets or property, to secure the loan. 3. Unsecured Promissory Note Term Sheet: In contrast to the secured term sheet, this type does not require any collateral from the borrower. 4. Interest-Only Promissory Note Term Sheet: This term sheet allows the borrower to initially only pay interest on the loan for a specified period before beginning to repay the principal amount. By understanding the Hillsborough Florida Angel Fund Promissory Note Term Sheet and its different variations, borrowers can be better informed when deciding on the right type of funding for their business needs.