Term Sheet Examples
Getting that initial surge of cash for an idea isn’t the only headache that inventors and entrepreneurs face – without a staff of lawyers on standby, navigating the terms and conditions of an investment often overwhelms them.
But PicoFund keeps things simple with easy to understand, inventor-focused terms and conditions that eliminate confusion and keep the process simple and streamlined.
PicoFund uses a simple 4-page SAFE (Simple Agreement For Equity) for investments – once the company is incorporated and the product on the rise, we receive shares in the company and include the option to buy additional shares at a discounted rate in the future.
Although the specific numbers will vary depending on the idea and size of the initial investment, we pride ourselves on our fair terms and founder-friendly practices. After all, we are inventors ourselves, and we understand how personally invested you are in your idea – we want to see you succeed and maintain control over that idea.
Simple to Understand
Our term sheets are straight forward, easy to understand, and thorough. You’ll always know exactly what’s expected of you, what we will provide, and how our relationship will evolve over the course of your idea’s growth into a tangible product hitting the market.
Fair and Reasonable
There’s a reason inventors and startups come to PicoFund – we truly are on your side. Inventors typically retain the majority of the rights to their idea, and although we do have standards in place for how the investment is managed, you have ample room to do everything necessary to get through the initial development stages. In this same vein, the amount of shares given to PicoFund are always fair, as is the discounted rate on future shares.
Upfront and Personal
When you receive an offer from PicoFund, you’re assured that the final contract is exactly as discussed, and all terms and conditions are straightforward. You’ll never be left scratching your head and wondering what a certain line in the contract means, or whether or not you’re getting exactly what was promised during our initial offer.
Due to our experience in engineering, patenting, development, and every other stage of the invention process, we uniquely understand the costs involved in getting an idea “going.” While you’ll still need to provide some of the initial funding, PicoFund’s goal is to get your idea out there, and that can only happen with a strong investment offer that makes it possible for you to start working.
In order to protect our investment, we do require that you stick to our list of approved contractors and service providers as you work. However, this list is carefully curated to ensure that you’re working with the best people out there – people who are experienced in their fields, and passionate about creating exciting new hardware.