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An Investment agreement term sheet lays out the key points and proposed terms for investing in an Irish company or project. It's like a snapshot of the deal's most important elements before drawing up the full investment contract - covering things like share price, voting rights, and investor protections under Irish company law.

While not legally binding (except for confidentiality clauses), term sheets help both investors and companies save time and legal costs by agreeing on major deal points early. They typically follow standard formats recognized by Irish venture capital firms and include provisions that align with the Companies Act 2014 and Irish investment regulations.

Use an Investment agreement term sheet when you're ready to seriously negotiate investment terms but before spending resources on full legal documentation. This document becomes essential once initial discussions with potential investors show promise - typically after pitch meetings but before due diligence begins.

It's particularly valuable for Irish startups seeking venture capital, as it helps frame negotiations within Irish legal requirements and investor expectations. The term sheet saves time and money by establishing key points early - like valuation, board rights, and anti-dilution provisions. Getting these terms agreed upfront prevents costly misunderstandings during the final investment agreement phase.

• Series A Investment term sheets: Most detailed, covering complex provisions for institutional investors, board seats, and voting rights under Irish company law
• Angel Investment term sheets: Simpler versions for early-stage funding, focusing on basic investment terms and minority shareholder protections
• Convertible Note term sheets: Outline debt-to-equity conversion terms, interest rates, and valuation caps for bridge financing
• Strategic Investment term sheets: Include specific commercial rights, like market access or technology licensing alongside investment terms

• Investors: Usually venture capital firms, angel investors, or private equity funds who initiate the term sheet to outline their investment terms and conditions
• Company Founders: Review and negotiate the Investment agreement term sheet to protect their interests and maintain control rights
• Corporate Lawyers: Draft and revise terms to ensure compliance with Irish company law and investment regulations
• Board Members: Review and approve key terms, especially regarding governance changes and voting rights
• Investment Advisors: Guide both parties through negotiations and help structure terms that align with market standards

• Company Details: Gather accurate corporate information, including registration number, share capital structure, and existing shareholders
• Investment Terms: Define the investment amount, valuation, and type of shares being offered
• Key Rights: List proposed investor protections, board representation, and voting rights under Irish law
• Exit Provisions: Outline drag-along rights, tag-along rights, and anti-dilution protections
• Commercial Terms: Include any specific business commitments, milestones, or performance targets
• Timeline: Set clear deadlines for due diligence, document preparation, and closing conditions

• Investment Structure: Clear details of share class, price per share, and total investment amount
• Investor Rights: Voting rights, board representation, and information access rights under Irish company law
• Pre-money Valuation: Company valuation and resulting ownership percentages post-investment
• Protective Provisions: Key veto rights and minority shareholder protections
• Binding Terms: Specifically which provisions are legally binding (typically confidentiality and exclusivity)
• Conditions Precedent: Requirements for closing, including due diligence and regulatory approvals
• Governing Law: Clear statement of Irish law jurisdiction and dispute resolution mechanisms

An Investment agreement term sheet differs significantly from a full Investment Agreement in several key aspects. While both documents are crucial in the investment process, they serve distinct purposes under Irish law.

• Legal Binding Nature: Term sheets are mostly non-binding (except for confidentiality clauses), while Investment Agreements are fully binding legal contracts
• Detail Level: Term sheets provide a high-level summary of key terms, while Investment Agreements contain comprehensive legal provisions and precise language
• Timing: Term sheets come first during negotiations to establish basic agreement, while Investment Agreements formalize the final, detailed terms
• Cost and Complexity: Term sheets are relatively simple and cost-effective to prepare, while Investment Agreements require extensive legal input and documentation
• Purpose: Term sheets facilitate initial agreement on key points, while Investment Agreements create enforceable legal obligations and protect all parties' rights