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An Investment agreement term sheet outlines the key terms and conditions for a potential investment deal in Singapore. It's essentially a blueprint that captures the main points both parties have agreed on, like investment amount, company valuation, and investor rights, before drafting the final detailed agreement.

While not legally binding (except for confidentiality and exclusivity clauses), these term sheets help streamline negotiations between investors and companies under MAS guidelines. They're particularly common in venture capital and private equity transactions, saving time and legal costs by getting early alignment on deal fundamentals before moving to complex documentation.

Use an Investment agreement term sheet when you're ready to formalize preliminary investment discussions but aren't yet prepared for a full legal agreement. It's particularly valuable during startup funding rounds, mergers and acquisitions, or when negotiating with venture capital firms in Singapore's dynamic investment landscape.

The term sheet becomes essential once both parties have verbally agreed on basic deal terms and need a structured way to move forward. It helps prevent misunderstandings, speeds up the due diligence process, and creates a clear framework for lawyers to draft the final investment documents under Singapore's Companies Act and Securities and Futures Act requirements.

• Standard VC Term Sheet: Used for venture capital investments, focusing on valuation, investment amount, and voting rights
• Convertible Note Term Sheet: Outlines debt-to-equity conversion terms, interest rates, and valuation caps
• Strategic Investment Term Sheet: Emphasizes corporate governance, board seats, and strategic collaboration rights
• Series Funding Term Sheet: Details preferred share rights, anti-dilution provisions, and liquidation preferences
• Bridge Financing Term Sheet: Specifies short-term funding terms, future equity conversion options, and investor protections under Singapore's regulatory framework

• Investors: Venture capitalists, angel investors, or private equity firms who initiate or review Investment agreement term sheets before committing capital
• Company Founders: Startup owners or entrepreneurs who negotiate and agree to investment terms outlined in the document
• Corporate Lawyers: Legal professionals who draft, review, and refine term sheets to ensure compliance with Singapore's investment laws
• Investment Bankers: Financial advisors who help structure deals and negotiate key terms
• Board Members: Company directors who review and approve term sheets before proceeding with investment rounds

• Company Details: Gather accurate corporate information, including ACRA registration, shareholding structure, and financial statements
• Investment Terms: Define investment amount, valuation, share class, and any special rights or preferences
• Due Diligence: Compile key business metrics, growth projections, and market analysis
• Stakeholder Input: Confirm board approval and existing shareholders' rights under Singapore law
• Legal Framework: Review MAS guidelines and Companies Act requirements for your specific investment structure
• Document Generation: Use our platform to create a compliant term sheet that includes all mandatory elements

• Investment Terms: Specify investment amount, valuation, and share class with clear pricing mechanisms
• Investor Rights: Detail voting rights, board representation, and information access privileges
• Anti-dilution: Include protection mechanisms and pre-emptive rights for future funding rounds
• Exit Provisions: Outline drag-along rights, tag-along rights, and liquidation preferences
• Binding Clauses: Specify which terms are legally binding, typically confidentiality and exclusivity
• Closing Conditions: List required approvals, due diligence requirements, and timeline
• Governing Law: State Singapore law as governing jurisdiction with dispute resolution methods

A common source of confusion in Singapore's investment landscape is the difference between an Investment agreement term sheet and a Investment Agreement. While related, these documents serve distinct purposes in the investment process.

• Legal Binding Nature: Term sheets are mostly non-binding (except for confidentiality and exclusivity clauses), 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 precise obligations
• Timing: Term sheets come first during negotiations, serving as a blueprint for the final Investment Agreement that follows
• Documentation: Term sheets are shorter (typically 5-10 pages) and use simpler language, while Investment Agreements are extensive documents with detailed legal clauses
• Purpose: Term sheets facilitate quick agreement on main points, while Investment Agreements provide complete legal protection and enforcement mechanisms