San Diego California Angel Fund Promissory Note Term Sheet

• Category: Small Business - Investment or Funding
• State: Multi-State
• County: San Diego
• 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."

A San Diego 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 and a borrower in San Diego, California. This term sheet serves as a preliminary agreement before the final loan documentation is created. Keywords: San Diego California, Angel Fund, Promissory Note, Term Sheet, loan agreement, borrower, legal document, preliminary agreement. The San Diego California Angel Fund Promissory Note Term Sheet typically includes key details such as the loan amount, interest rate, repayment terms, and any additional provisions specific to the loan agreement. It serves as a guide for both parties to negotiate and establish the fundamental aspects of the loan. Different types of San Diego California Angel Fund Promissory Note Term Sheets may exist depending on the specific terms and requirements of the angel fund. Some variations may include: 1. Secured Promissory Note: This type of term sheet may include provisions where the borrower provides collateral as security for the loan. This collateral could be in the form of property, assets, or any other valuable item agreed upon by the parties. 2. Convertible Promissory Note: This term sheet might feature clauses that allow the loan to convert into equity in the borrower's business at a later stage. This conversion typically occurs during a specified event, such as a future financing round or the sale of the company. 3. Installment Promissory Note: In this type of term sheet, the borrower agrees to repay the loan amount, along with interest, in regular installments over a predetermined period. Each installment may include a portion of the principal amount along with the accrued interest. 4. Unsecured Promissory Note: This term sheet involves a loan agreement without any collateral requirement. The borrower relies solely on their creditworthiness and the faith the angel fund has in their ability to repay the loan. The variations mentioned above are not exhaustive, as term sheets can be tailored to fit the specific needs and preferences of the angel fund and borrower. It is crucial for both parties to carefully review and negotiate the terms outlined in the San Diego California Angel Fund Promissory Note Term Sheet before proceeding with the final loan documentation.