Defining Mission

Clearly defining social or environmental goals in term sheets and charter documents will align the interests of investors and entrepreneurs, as well as avoid potential misunderstandings over time. Articulating the mission brings a shared understanding of what the mission is and can surface differences in values and priorities between the company and investors early on. If the mission is not spelled out, both parties may mistakenly think they have a shared understanding. In the investment term sheet entrepreneurs can agree to define mission in relevant legal agreements and/or the company’s charter.