Growth funding

The term sheet or offer letter sets out the terms of the commercial arrangement between the opportunity and The Cascade Fund. The preference is for simplicity as far as possible. Terms include, inter alia:

• The amount of agreed funding,
• What the funds will be used for, with milestones and possibly with tranches of funding released against meeting those milestones,
• What the opportunity is offering in return for the investment,
• Undertakings that the opportunity owns its Intellectual Property.

Other possible terms include, but are not limited to:

• Monitoring functions; The Cascade Fund placing a non-executive director on the board and/or requiring regular reporting on progress,
• The Cascade Fund requiring additional help to be obtained by the opportunity (management, consultancy etc),
• Technical and Legal due diligence is satisfactorily completed,
• Warranties against claims on the IPR or not achieving milestones,
• Undertakings of commitment by key personnel.