The Crowdfunding Handbook

APPENDIX 7

Term Sheet for Crowdfunded Offering of Series B (Nonvoting) Preferred Shares in Corporation

TERM SHEET

FOR PRIVATE PLACEMENT OF

SERIES B CONVERTIBLE PREFERRED STOCK OF

[Name of Corporation]

[Date of Issue]

This term sheet summarizes the principal terms of the “Series B” round of financing for [Name of Corporation].

OFFERING TERMS

Issuer:	[Name of Corporation], a [jurisdiction of incorporation] corporation (the “Company”)
Securities to be Issued:	[Number of Shares to be issued] shares of Series B Convertible Preferred Stock (the “Preferred Stock”)
Aggregate Proceeds:	$[aggregate proceeds of offering, in dollars]
Price:	$[offering price per share] per share
Pre-money valuation:	$[pre-money valuation of corporation]
Expected ...