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An Investment agreement term sheet lays out the key points of a potential investment deal in Denmark, acting like a road map before the full legal agreement. It captures important details like valuation, ownership stakes, and investor rights in a clear, non-binding format that both parties can review and discuss.

Under Danish corporate law, these term sheets help startups and investors move efficiently through negotiations while maintaining legal flexibility. Though not legally binding (except for specific clauses like confidentiality), the document sets clear expectations and shows serious intent from both sides. Danish investors typically use term sheets as the foundation for final investment agreements, which must comply with the Danish Companies Act.

Use an Investment agreement term sheet when you're ready to move from informal investment discussions to serious negotiations in Denmark. This document becomes essential once both parties have a basic understanding of the deal structure and want to outline specific terms before drafting the final agreement.

The term sheet proves particularly valuable when dealing with complex investment rounds involving multiple stakeholders, or when Danish venture capital firms require a clear framework for due diligence. It helps avoid misunderstandings early on and saves time and legal costs by establishing key terms before involving lawyers in detailed documentation. Many Danish startups use term sheets when seeking Series A funding or negotiating with professional investors.

• Standard Equity Investment: The most common type of Investment agreement term sheet in Denmark, focusing on share purchase, valuation, and basic investor rights
• Convertible Note Term Sheet: Used for bridge financing, outlining conversion terms, interest rates, and valuation caps under Danish securities law
• Strategic Investment: Includes additional provisions for corporate investors, like commercial agreements and technology licensing rights
• Series A Venture Capital: More comprehensive terms covering board rights, anti-dilution, and preferential rights common in Danish VC deals
• Angel Investment: Simplified version focusing on essential terms, often used for early-stage Danish startups seeking smaller investments

• Startup Founders: Initiate and negotiate term sheets when seeking investment, often working with their board to define acceptable terms
• Venture Capital Firms: Present term sheets to promising Danish startups, outlining their investment conditions and expectations
• Corporate Lawyers: Review and refine Investment agreement term sheets to ensure compliance with Danish corporate law
• Angel Investors: Use simplified term sheets for early-stage investments, focusing on basic terms and conditions
• Business Advisors: Guide negotiations between parties and help structure terms that protect both sides' interests
• Board Members: Review and approve term sheets before proceeding with formal investment agreements

• Company Details: Gather complete corporate information, including registration numbers, share capital, and existing shareholders
• Investment Structure: Define the type and amount of investment, valuation, and share class details
• Key Terms: List major conditions like board rights, veto rights, and anti-dilution provisions
• Financial Data: Prepare current financials, projections, and use of funds
• Due Diligence: Collect essential corporate documents and intellectual property information
• Timeline: Establish clear milestones for negotiations, due diligence, and closing
• Legal Framework: Our platform ensures compliance with Danish corporate law while generating customized term sheets

• Investment Terms: Specify investment amount, valuation, and share class structure under Danish law
• Investor Rights: Detail voting rights, board representation, and information access privileges
• Anti-dilution: Include protective provisions and pre-emptive rights for future funding rounds
• Exit Rights: Define tag-along, drag-along rights, and liquidity preferences
• Confidentiality: State binding confidentiality obligations per Danish data protection laws
• Due Diligence: Outline scope and timeline for review process
• Governing Law: Specify Danish law jurisdiction and dispute resolution mechanisms
• Non-Binding Statement: Clear indication that terms are non-binding except specified clauses

The key distinction lies between an Investment agreement term sheet and a full Investment Agreement. While both documents deal with investment terms, they serve different purposes in the Danish investment process.

• Legal Binding: Term sheets are generally non-binding (except for specific clauses like confidentiality), while Investment Agreements are fully binding legal contracts
• Detail Level: Term sheets provide a high-level outline of key terms, while Investment Agreements contain comprehensive legal provisions and warranties
• Timing: Term sheets come first in negotiations as a discussion framework, while Investment Agreements represent the final, executable deal
• Length and Complexity: Term sheets are brief (5-10 pages) and use plain language, while Investment Agreements can span 50+ pages with detailed legal terminology
• Purpose: Term sheets facilitate negotiation and alignment, while Investment Agreements create enforceable legal obligations under Danish law