letters-and-notices-templates
Letter of Intent for Investment Template: Funding Terms
Use our free Letter of Intent for Investment template to outline key terms of a proposed equity, debt, or convertible investment, including amount, valuation, structure, governance, and closing conditions before drafting definitive agreements. Customize, download, and print in minutes.
LETTER OF INTENT FOR INVESTMENT TEMPLATE FAQ
What is a Letter of Intent for Investment?
A Letter of Intent for Investment is a preliminary document where an investor and a company outline the main proposed terms of an investment. It typically covers the investment amount, type of security (equity, debt, or convertible), valuation, basic rights, closing conditions, and which provisions are binding while the parties prepare definitive agreements.
Is a Letter of Intent for Investment legally binding?
Often, the commercial terms (such as valuation and investment structure) are expressed as non-binding, while specific sections — like confidentiality, exclusivity (no-shop), governing law, and cost allocation — are intended to be binding. Whether an LOI is binding depends on its wording and applicable law, so it should clearly state which provisions are binding and which are not.
When should you use a Letter of Intent for Investment?
Use an investment LOI when the investor and company have agreed in principle on key terms and want a written framework before spending more time and money on due diligence, legal drafting, and regulatory or corporate approvals. It helps align expectations and provides a roadmap for the definitive investment documents.
What should a Letter of Intent for Investment include?
A clear LOI usually identifies the parties, describes the company and investment purpose, sets out the investment amount and type of security, describes the proposed valuation and capital structure impact, outlines any investor rights (such as board representation or information rights), explains closing conditions, and addresses confidentiality, exclusivity, and binding vs. non-binding terms.
How is a Letter of Intent different from a term sheet?
Both serve as preliminary outlines of deal terms. A term sheet is often formatted as a short, bullet-point list of key commercial terms, while a Letter of Intent uses letter-style narrative plus structured sections. Many deals use either format, depending on preference; some use both together.
Can AI Lawyer help me customize this Letter of Intent for Investment?
Yes. AI Lawyer can help you adapt this Letter of Intent for Investment template by adjusting the investment structure, valuation, rights, conditions, and binding language to better reflect your deal, while keeping the document clear and consistent. You still decide the final terms and remain responsible for legal review and signatures.