| name | term-sheet-example |
| description | Example term sheet for Eraser Robotics (pre-seed convertible note from Forge Robotics Ventures) — use with the term-sheet-eval skill for practice. |
| disable-model-invocation | true |
TERM SHEET
Date: March 10, 2026
COMPANY
Company Name: Eraser Robotics, Inc.
Description: Autonomous robotics company developing whiteboard cleaning systems for schools, offices, and healthcare environments.
INVESTOR
Investor Name: Forge Robotics Ventures, LLC
FINANCING OVERVIEW
Round Type: Pre-Seed (Accelerator + Convertible Note)
Total Investment: Up to $150,000
- $75,000 upon execution
- $75,000 upon milestone completion
EQUITY GRANT
- Equity Issued: 3.0%
- Basis: Fully diluted (including options, warrants, SAFEs, and convertibles)
- Timing: Issued upon entry into Program
CONVERTIBLE PROMISSORY NOTE
- Principal Amount: Up to $150,000
- Interest Rate: 6% simple annual interest
- Maturity Date: 24 months from issuance
- Discount Rate: 20%
- Valuation Cap: $6,000,000
CONVERSION TERMS
The Note converts into equity upon:
- A qualified financing of $1,000,000 or more, or
- At maturity, at the election of the Investor
Conversion price shall be the lower of:
- Price per share in the qualified financing less the 20% discount, or
- Price per share implied by the $6,000,000 valuation cap
CHANGE OF CONTROL
If the Company undergoes a change of control prior to conversion:
Investor may elect to:
- Convert into equity immediately prior to the transaction, or
- Receive 1.5x the outstanding principal plus accrued interest
PRO RATA RIGHTS
Investor shall have the right to participate in future equity financings to maintain its ownership percentage.
INFORMATION RIGHTS
Company shall provide:
- Quarterly financial and operational updates
- Annual financial statements
USE OF FUNDS
Funds shall be used for:
- Product development and prototyping
- Pilot deployments
- Manufacturing readiness
- Go-to-market activities
PROGRAM PARTICIPATION
Company agrees to:
- Participate in accelerator programming
- Attend required sessions and Demo Day
- Engage in pilot and commercialization efforts
MANUFACTURING / LOCATION
Company agrees to maintain a meaningful operational presence in Pennsylvania for at least three (3) years or provide equivalent repayment or compensation.
MATCHING CONTRIBUTION
Company shall provide matching contributions equal to at least 50% of the total funds received, which may include:
- Cash expenditures
- Founder labor
- Equipment or services
INTELLECTUAL PROPERTY
- All intellectual property shall be assigned to the Company
- All founders, employees, and contractors shall execute invention assignment agreements
FOUNDER VESTING
- Founder equity subject to four (4) year vesting with a one (1) year cliff
- Unvested shares subject to repurchase
CONDITIONS PRECEDENT
Prior to funding, the Company must:
- Be incorporated in Delaware or Pennsylvania
- Maintain a clean capitalization table
- Resolve all intellectual property ownership
- Execute all definitive agreements
PREEMPTIVE RIGHTS
Investor shall have standard preemptive rights to purchase additional securities in future financings. Rights are assignable to affiliates.
EXPIRATION
This term sheet expires on March 25, 2026, unless extended by the Investor.
NON-BINDING
This term sheet is non-binding except for provisions relating to confidentiality and exclusivity, if applicable. Definitive agreements will govern the investment.
