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Investment Letter of Intent Template

Date:

From:

Name:

Address:

City, State, Zip:

To:

Name:

Title:

Company:

Address:

City, State, Zip:

Subject: Letter of Intent to Invest

Dear ,

This letter serves as a formal expression of intent regarding a potential investment opportunity. The undersigned, , is interested in investing in . This letter outlines key terms and conditions that would govern this potential transaction, subject to further discussion and negotiation.

1. Investment Amount: The proposed investment amount is $.

2. Purpose of Investment: The funds will be utilized for [Specify Purpose(s)], which may include but are not limited to:

  • .
  • .
  • .

3. Timing: This investment may be structured to be completed no later than .

4. Confidentiality: Both parties agree to keep this letter and its contents confidential until a formal agreement is executed.

5. State Law: This letter is governed by the laws of the State of .

This Letter of Intent is intended to outline the preliminary understanding between both parties and does not constitute a binding agreement. A formal investment agreement will be drafted to finalize the terms of the investment.

If you agree with the outlined terms, please sign below to acknowledge your acceptance:

______________________________

Signature of Investor:

______________________________

Date:

Kind regards,

Similar forms

  • Term Sheet: Similar to an Investment Letter of Intent, a term sheet outlines the key terms and conditions of an investment. It serves as a preliminary agreement, summarizing the main points before the final agreement is drafted.
  • Memorandum of Understanding (MOU): An MOU is a non-binding agreement that expresses mutual intentions between parties. Like the Investment Letter of Intent, it clarifies the expectations and responsibilities of each party involved.
  • Letter of Intent (LOI): An LOI is often used in various business transactions to indicate a party's intention to enter into a formal agreement. It shares similarities with the Investment Letter of Intent in that it sets the stage for further negotiations.
  • Purchase Agreement: A purchase agreement details the terms of a sale, including price and conditions. While more formal, it can reflect the intentions laid out in an Investment Letter of Intent regarding the acquisition of assets or equity.
  • Non-Disclosure Agreement (NDA): An NDA protects confidential information shared between parties. It is similar in that it establishes a framework for trust and confidentiality, which can be essential during investment discussions.
  • Joint Venture Agreement: This document outlines the terms of a partnership between two or more parties. Like the Investment Letter of Intent, it defines the roles and contributions of each party in a collaborative effort.
  • Shareholder Agreement: A shareholder agreement governs the relationship between shareholders in a company. It can be akin to an Investment Letter of Intent as it sets expectations for ownership and management roles.
  • Investment Agreement: This formal contract specifies the terms of an investment, including the amount, ownership stake, and rights of the investor. It directly follows the intentions expressed in an Investment Letter of Intent.