The Deal

 

Basically this section should be your version of the "Term Sheet" or  "Commitment Letter". The following information should be included :

  • The Valuation of your business from your viewpoint
  • How much money do you require?
  • When do you want the money? Is timing of investment critical to your business proposition ?
  • What percentage of equity are you willing to give to the investors?
  • If you also want a loan, then what interest are you willing to pay, when will you be able to pay the principal and what collateral can you give?

What other guarantees or terms are you willing to give to the Investor to safeguard his interest, for example Board appointments of the Investor, Investor consent for the certain transactions like election of directors, capital expenditure, appointment of key personnel, dividend payments etc.