Investment agreement term sheet Template for Switzerland

An investment agreement term sheet outlines the key terms and conditions between investors and companies seeking funding in Switzerland. It serves as a preliminary document that captures the main points of a potential investment deal, including valuation, share price, voting rights, and board representation.

While not legally binding under Swiss law (except for confidentiality and exclusivity clauses), this document helps both parties align their expectations before drafting the final investment agreement. Swiss startups and SMEs commonly use term sheets during funding rounds to establish clear frameworks for negotiations with venture capitalists, angel investors, or private equity firms.

Use an investment agreement term sheet when entering serious funding discussions with potential investors in Switzerland. This document becomes essential once initial talks progress beyond casual interest and both parties need to outline specific investment terms. For startups seeking venture capital or established companies pursuing private equity, the term sheet helps structure negotiations effectively.

The right time to draft a term sheet is after verbal agreement on basic deal terms but before investing in expensive legal documentation. Swiss companies typically introduce it when discussing investment amounts above CHF 100,000, or when dealing with professional investors who expect formal documentation of key terms before proceeding with due diligence.

• Simple Seed Investment Term Sheet: Used for early-stage Swiss startups seeking initial funding, focusing on basic valuation and ownership terms
• Convertible Loan Term Sheet: Outlines terms for debt that converts to equity, popular among Swiss tech startups
• Series A/B Investment Term Sheet: More complex version for larger funding rounds, including detailed investor rights and governance provisions
• Strategic Investment Term Sheet: Designed for corporate investors, including specific provisions for industry collaboration and technology access
• Bridge Financing Term Sheet: Short-form version for interim funding, typically used before larger investment rounds

• Startup Founders: Initiate and negotiate term sheets when seeking funding for their Swiss companies
• Venture Capital Firms: Present and negotiate term sheets with promising Swiss startups, often leading investment rounds
• Angel Investors: Use simplified term sheets for early-stage investments, typically under CHF 500,000
• Corporate Lawyers: Draft and review term sheets to ensure compliance with Swiss investment laws
• Investment Advisors: Guide negotiations and help structure term sheets that balance investor and company interests
• Board Members: Review and approve term sheets before proceeding with formal investment agreements

• Company Information: Gather current valuation, cap table, and financial projections
• Investment Details: Define investment amount, share price, and type of securities being offered
• Investor Rights: Outline voting rights, board seats, and any special privileges
• Key Terms: Determine anti-dilution protection, liquidation preferences, and vesting schedules
• Due Diligence: Prepare key financial statements and corporate documents
• Timeline: Set clear deadlines for negotiations, due diligence, and closing
• Legal Review: Our platform ensures compliance with Swiss investment laws while generating customized term sheets

• Investment Structure: Detailed description of investment amount, share class, and price per share
• Valuation Terms: Pre-money valuation and resulting ownership percentages
• Investor Rights: Voting rights, board representation, and information access rights
• Protection Provisions: Anti-dilution terms and pre-emptive rights under Swiss law
• Exit Rights: Tag-along, drag-along, and liquidation preferences
• Confidentiality: Binding non-disclosure provisions (one of few legally binding elements)
• Governing Law: Explicit reference to Swiss law and jurisdiction
• Binding Provisions: Clear distinction between binding and non-binding clauses

The main difference between an investment agreement term sheet and a full Investment Agreement lies in their legal binding nature and level of detail. While both documents deal with investment terms, they serve distinct purposes in the Swiss investment process.

• Legal Force: Term sheets are largely non-binding (except for confidentiality clauses), serving as preliminary frameworks. Investment agreements are fully binding legal contracts.
• Detail Level: Term sheets provide high-level summaries of key terms, while investment agreements contain comprehensive legal provisions and precise obligations.
• Timing: Term sheets come first during negotiations, followed by the investment agreement once parties agree on basic terms.
• Cost and Complexity: Term sheets are simpler and less expensive to draft, making them ideal for initial discussions before committing to detailed legal documentation.