At what stage is ts investment?

TS usually stipulates the core terms of investment, and after the adjustment, investors and enterprises will sign a more formal investment agreement.

TS and investment agreement are solutions set by investors and project parties to solve information asymmetry. TS and investment agreement are bilateral agreements, and most of the clauses are beneficial to investors.

1.TS and investment agreement are a solution mechanism set up by investors and project parties to solve information asymmetry. For example, TS stipulates that the premise of investment is that due diligence results are normal; Another example is the profit target of the project party in the next few years as agreed in TS and investment agreement. These terms are written into TS and subsequent investment agreements in order to coordinate the cooperation between the two parties under the premise of asymmetric information.

2.TS and investment agreements are bilateral agreements, and most of the clauses are beneficial to investors. For example, in option pool, it is obviously unequal to set up management incentives before investment, compulsory repurchase and full expenses after investment. As for other terms that may not seem so unequal, we can find that they are to safeguard the interests of investors.

3. Many entrepreneurs have heard of investment framework agreement or investment intention agreement or TS during the financing process. This is usually because the investment manager discussed and approved your entrepreneurial project at the project initiation meeting within the organization, and is willing to further promote investment cooperation substantially from the perspective of investment institutions. At this time, it is necessary to negotiate with entrepreneurs on relevant investment methods, conditions and prices.

4. In view of the pre-appointment communication, on-the-spot investigation, corporate financing plan, use and preliminary valuation of both parties. Investment institutions will submit a seemingly simple (usually only 65,438+0-2 pages) investment framework agreement or the so-called TS(Terms Sheet) to entrepreneurs, which collects the main terms involved in this investment and financing, because the agreement used to use similar tables or lists.

5. General investment institutions submit ts to entrepreneurs, which is equivalent to the buyer's placard quotation (engagement invitation), indicating that there is indeed a formal investment intention. As long as both parties have no objection to the terms, they can sign an investment framework agreement (contact agreement); Note that this is an engagement agreement, not a marriage certificate, that is, an investment agreement. From the actual situation, formal investment institutions will generally promote formal investment after signing TS, unless the due diligence of startups is abnormal. However, there are also a few investment institutions that have passed due diligence after signing TS, and have not yet completed their investment.

6. For the terms in the investment framework agreement, entrepreneurs need to read them carefully one by one to ensure that they are fully understood and recognized, because this is the main term of cooperation between the two parties. If you have different opinions, you must communicate and negotiate in a timely and frank manner, because all the terms in the investment framework agreement will be written into the final investment agreement, and once signed, it will generally not be modified; If entrepreneurs have any supplementary needs, or need additional negotiations, it is necessary to explicitly ask investors at this time. If entrepreneurs don't understand the terms, they can also hire reliable legal consultants or financing consultants to help them check.