Term sheets - Marilyn Mrkusich | Capital Education

The Capital Education Programme helps businesses understand the capital-raising process in NZ. Key points for term sheets: -Describe the nature of the investment. -Outline the price of a share and whether investors are paying up front or in tranches. -Are not legally binding, and are conditional on entry into formal legal subscription or shareholder agreements. -Should clarify what terms are binding and what terms are not. -It's helpful to define shareholder terms to avoid issues further down the line. Some other items an investor will want to include are: -Key performance milestones (they may also choose to make tranche payments against meeting these). -Founder commitments, for example, staying in the role for a minimum period. You can find out more about Capital Education on the Callaghan Innovation website: https://www.callaghaninnovation.govt.nz/innovation-skills/capital-education

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