This Term Sheet outlines the principal terms under which the Investor proposes to invest in {{ company_name }} (the “Company”). This document is non-binding except for the sections marked Confidentiality and Exclusivity. Final terms are subject to definitive agreements, the Company’s incorporation as a {{ incorporation_state }} C-Corporation, and satisfactory completion of due diligence.
| Company | {{ company_name }} (to be incorporated in {{ incorporation_state }} as a C-Corporation) |
| Product | {{ product_name }} — the portal for independent film & TV ({{ product_url }}) |
| Founder | {{ founder_name }} (“MadBrad”) |
| Investor | [Investor Name] |
| Investment Amount | ${{ '{:,}'.format(investment_amount) }} USD |
| Security | Simple Agreement for Future Equity (SAFE) — Post-Money Valuation Cap, no discount |
| Post-Money Valuation Cap | ${{ '{:,}'.format(valuation_cap) }} |
| Equity Allocation | {{ equity_percent }}% of fully-diluted equity at conversion (calculated against the Post-Money Valuation Cap above) |
| Deployment Period | Twelve (12) months from closing |
| Funding Structure | Tiered milestone-based release across four tranches (see Tiered Funding Milestones) |
| Use of Funds | Platform deployment, sales hire, conference presence, infrastructure, founder operations (see Use of Funds) |
| Closing Date | Upon Company incorporation and execution of definitive documents |
Information Rights. Investor shall receive monthly business updates covering platform metrics, user growth, revenue, and deployment progress against the agreed milestones, plus annual unaudited financial statements within 120 days of fiscal year end.
Pro-Rata Rights. Investor shall have the right to participate in future financing rounds of the Company to maintain their ownership percentage on the same terms as other participants in such financing.
Most Favored Nation. If the Company issues a SAFE on more favorable terms to a subsequent investor prior to the next priced round, Investor’s SAFE shall be amended to match those terms.
Time Commitment. {{ founder_name }} shall devote substantially full business time to the Company.
Founder Salary. $48,000 annualized, paid monthly ($4,000/mo), beginning at closing.
Vesting. Founder shares subject to a standard 4-year vesting schedule with a 1-year cliff, beginning at incorporation.
IP Assignment. All intellectual property created by the Founder relating to the Company, including the {{ engine_name }} and the {{ product_name }} platform, shall be assigned to the Company at incorporation via a standard Founder IP Assignment Agreement.
The Company shall be governed by a Board of Directors. Initial composition: one (1) founder seat held by {{ founder_name }}. Investor shall have observer rights to all Board meetings during the deployment period. A formal Board seat may be negotiated upon the next priced equity round.
Confidentiality. All information exchanged in connection with this investment is to be treated as strictly confidential by both parties. This section is binding.
Exclusivity. For a period of thirty (30) days from the signing of this Term Sheet, the Company will not actively solicit other investors for this round. This section is binding.
Upon mutual signature of this Term Sheet: