Termsheet & Shareholders' Agreement
Rightly Negotiate the Terms of the Investment
Online Learning + Termsheet and Agreement Templates
Legal Aspects of Fundraising
Sample Termsheet for Angel Investment
Sample Termsheet for Venture Capital Investment
FundEnable Pocket Book on Termsheet & SHA
Summary & Conclusion
Time To Close The Investment Deal!
Learning Outcomes and Using Termsheet & Agreement Templates
Gain detailed understanding of all terms and rights in a Termsheet
Understand the legalities associated with termsheet and shareholders' agreements
Get access to FundEnable templates of termsheet, CCD and CCPS agreements and Safe Notes
Earn a Linkedin Shareable Certificate on Completion
Get Access to 8 Templates + 12 Courses
Typically all the expenses related to raising capital such as legal fees, compliance fees, due-diligence fees etc. are done by the company. These expenses have to be made upfront – before the fund transfer. In rare cases, investors take up some of these expenses.
Addressing common questions ahead of time to save yourself and Two most important additions in the SHA are – Representations and Warranties and Indemnification. Reps and Warranties states that the facts disclosed by the company during the evaluation process are true. Indemnity clause keeps the investor protected and free from liabilities and losses which might occur due to specific events. Both these clauses are negotiated post due-diligence.
No. Stamp duty of 0.2% of investment amount is paid on SHA. Stam duty of 0.1% of the investment amount is paid on issuance of shares.
Yes, however liquidation preference clause will kick in and proceeds of the sale will be split between the founder and the investor based on liquidation preference formula.
Good faith! Also, VC industry is closely knit where Partners of funds speak to each other often. In case the word goes out that a company has signed a termsheet and yet having conversation with other investors – the reputation of founders in the VC industry might get damaged. Why take that risk? You need to raise more rounds in future!
No. However, the founders should meticulously look for clauses that might force the founders to buy back the stake from the investors in case they don’t get an exit – such as the put option. Such clauses might be potentially a big problem for the personal assets of the founder.
It all depends on the findings of the Due-Diligence exercise.
Kindly download the entire T&C document by clicking here T&C.pdf
It is strongly recommended that users read the T&C document while purchasing the FundEnable Toolkit.
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