Document background
The Funding Term Sheet serves as a crucial preliminary document in investment transactions under Irish law, laying out the fundamental terms and conditions for a proposed investment in a company. This document type is typically used during the initial stages of investment negotiations, before proceeding with detailed definitive agreements. It covers essential aspects such as investment amount, valuation, share class rights, governance provisions, and investor protections. While primarily non-binding (except for specific provisions), the Funding Term Sheet provides a clear framework for subsequent legal documentation and helps ensure all parties have a common understanding of the key investment terms. The document must comply with Irish company law, particularly the Companies Act 2014, and relevant EU regulations governing investments and financial services.
