TERM SHEET EXAMPLES
Templates and examples of term sheets for a variety of startup investments (online, MS Word, PDF). Note that these are shared as resources and do not construe legal advice. Please check with your lawyer before entering into any legal agreement.
GOVERNance DOCUMENTS
Certain documents from government providing for operation of the 49SAF (PDF).
Allocation Agreement—US Treasury contract originally funding the 49SAF program.
Evergreen Fund—Resolution allowing 49SAF’s funding and reinvestment activity from returns of invested principal and interest.
Confidentiality Clause—Municipal Ordinance 3.90.040.Q exempts from Public Record certain documents related to 49SAF investments.
STATE OF ALASKA PUBLICATIONS
Documents published by the state on securities matters:
Alaska Crowdfunding Exemption: Innovating Alaska Act—This is the web portal for the state’s “crowdfunding” law, the Innovating Alaska Act. There’s an excellent FAQ on the site as well as the changes to state law creating the intrastate funding exemption.
Thinking of Raising Capital For Your Business? (PDF)—A solid primer on what raising capital means, and its legal implications. See our cautionary note below.
49SAF INVESTMENT DOCUMENTS
These documents are of use to our partner fund managers, investees, and other related parties:
Compliance Checklist (pdf)—Checklist 49SAF reviews to help determine transaction compliance with our federal dollar (“SSBCI”) requirements.
Federally Required Certifications (pdf)— Prior to placing any transaction, funds must sign one certification (Investor use of Proceeds) and have the company (investee) sign two (Investee Use of Proceeds, Sex Offender).
Transaction Enrollment Form (excel)—All funds must submit one to 49SAF after placing any transaction (excel)
49SAF Confidentiality Certification (pdf)—49SAF may ask certain parties (eg advisors, professional service providers) to sign this Confidentiality Certification.
A word of caution for companies raising capital
It’s always worth being extra careful when raising capital to build a company, knowing the specific state and federal securities exemption you intend to rely upon that will allow you to “sell” investment in your company within the law. Raising money from others to build a business is sometimes necessary; it comes with legal implications. Saying the wrong thing, or advertising your offer can potentially subject you to enforcement risk. Be cautious.
How to proceed: If you’re a company seeking investment, be sure to:
a) Find a lawyer who can help you through the process to identify the right securities exemptions you’re going to rely upon; spend the money to identify the rules and take the right steps. It will save you in the long run.
b) Continue to be risk-averse when stating you’re raising capital for your company. It’s almost always a terrible idea to publicly state in a general, everyday setting that your company is raising money, or get into the details of your offer.
It’s expected and necessary that startups raise money for their firms; it can be awful when you run afoul of the rules. So talk to a lawyer, and know the regulations right for your company.