Funding Term Sheet Template for Belgium

The Funding Term Sheet is a critical preliminary document used in investment transactions under Belgian law, typically preceding full investment agreements. It is employed when companies seek external funding and need to document the principal terms of the proposed investment. The document captures essential commercial and legal terms including investment structure, valuation, rights, and conditions, while considering Belgian corporate law requirements and EU regulations. Though primarily non-binding, it forms the foundation for negotiation and drafting of definitive agreements. The term sheet must account for specific Belgian legal requirements regarding corporate governance, securities regulations, and financial market rules, while also considering broader EU regulatory frameworks that may impact the investment structure.

1. Parties: Identification of the company receiving funding and the potential investor(s)

2. Background: Brief description of the company, purpose of the investment, and current fundraising round

3. Definitions: Key terms used throughout the term sheet

4. Investment Overview: Summary of investment amount, valuation, and type of securities being offered

5. Securities Details: Detailed description of the type of securities, price per share/unit, and total number being offered

6. Investment Terms: Key economic terms including pre-money valuation, capitalization table, and share classes

7. Investor Rights: Voting rights, board representation, information rights, and other control provisions

8. Transfer Restrictions: Limitations on transfer of securities, right of first refusal, tag-along and drag-along rights

9. Closing Conditions: Prerequisites for completing the investment, including due diligence and regulatory approvals

10. Confidentiality: Binding provisions regarding the confidentiality of the term sheet and negotiations

11. Exclusivity: Period during which the company cannot seek or accept other investment offers

12. Timeline: Expected schedule for completing due diligence and executing definitive agreements

13. Governing Law: Specification of Belgian law as governing law and jurisdiction