Angel Investor Term Sheet
An angel investor term sheet summarizes key economic and control terms for a preferred stock financing, typically non-binding except for exclusivity and fees. Use this before drafting stock purchase agreements for an angel-led seed round. It aligns on pre-money, investor rights, and founder vesting refresh if any.
What's included
A ready-to-use angel investor term sheet covering pre-money valuation and round size, security type and liquidation preference, board composition and observer rights, with signature fields already placed for Company and Lead Investor. Fill in the bracketed details (like [Company Name] or [Date]) using Docracy's built-in text editor, then send it out for signature.
This is a general template for informational purposes only and does not constitute legal advice. Consult a qualified attorney to review it for your specific situation and jurisdiction before use.
Key clauses
- Pre-money valuation and round size
- Security type and liquidation preference
- Board composition and observer rights
- Protective provisions and drag-along
- Option pool increase before closing
- Exclusivity/no-shop period
What you'll fill in
[Company Name][Lead Angel Name][Pre-Money Valuation][Investment Amount][Option Pool Target %][Board Seat Y/N][Exclusivity Days]Legal summary
Term sheet guides definitive docs; investors should not wire funds until legal closing. Founders should understand dilution and control changes from protective provisions.
Free for up to 2 signers, no account required. Need unlimited? Flat $10/month.
FAQ
Is this Angel Investor Term Sheet legally binding?
Signing through Docracy uses a simple electronic signature (SES), which is legally recognized for everyday business agreements under laws like the U.S. ESIGN Act and the EU's eIDAS regulation. This is a general template, not legal advice — for high-stakes or regulated agreements, have a qualified attorney review it for your situation.
Who needs to sign this Angel Investor Term Sheet?
This template includes signature fields for Company and Lead Investor — already placed — plus 7 placeholder fields to fill in before you send it.
Can I edit this Angel Investor Term Sheet before sending it?
Yes — Docracy's editor lets you edit the text, add or remove signature fields, redact sections, and reorder pages before you send it.
Do I need an account to send this Angel Investor Term Sheet?
No — it's free for up to 2 signers with no account required. Create a free account only if you want to save it to a dashboard or reuse it later.
Try it with an AI assistant
Paste one of these into ChatGPT, Claude, or your assistant of choice:
“Fill for $1.5M seed on $6M pre with 1x non-participating pref.”
“Add standard NVCA-lite protective provisions list.”
“Explain option pool shuffle impact on founder dilution.”
Why teams start with Docracy
“Docracy is a great product that I have tested and am using. It is easy to use, has good tools, is always up to date, and implements new features. Highly recommended.”— DACH Advisory
Free for up to 2 signers, no account required. Need unlimited? Flat $10/month.