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Simple Agreement For Future Equity Term Sheet
"Need a Simple Agreement For Future Equity Term Sheet for my Singapore-based AI startup seeking USD 500,000 in seed funding, with a valuation cap of USD 5 million and a 20% discount rate, to be completed before March 2025."
1. Parties: Identification of the company and investor(s)
2. Background: Context of the investment and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Investment Amount: Specified amount to be invested under the SAFE
5. Valuation Cap: Maximum valuation for conversion purposes
6. Conversion Rights: Terms and conditions for converting the investment into equity
7. Governing Law: Specification of Singapore law as governing law
1. Discount Rate: Alternative conversion mechanism providing price discount in addition to or instead of valuation cap
2. Most Favored Nation: Protection clause ensuring investor receives the most favorable terms offered to other investors
3. Pro-rata Rights: Rights for investor to participate in future funding rounds to maintain ownership percentage
1. Capitalization Table: Current ownership structure of the company
2. Form of Conversion Notice: Template document for executing conversion rights
3. Required Shareholder Consents: List of necessary shareholder approvals
4. Disclosure Schedule: Material information about the company's business and operations
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