Letter of Intent
What is a letter of intent?
For pre-launch start-ups looking to attract backers to make their product or service a reality, being able to demonstrate early interest in a tangible manner is key.
A Letter of Intent is a document issued by a potential customer to the start-up indicating its interest to acquire the product of service once it is launched.
How it works
1. Review sample document
2. Answer a few quick questions
3. Check for incoming LexKnights email
4. Review finalized contract
5. Follow instructions to E-Sign
Show Deeper understanding of rationale for interest
Backers of the new product all service will want to have a deep understanding of market interest. Our letter prompts you to set out a clear rationale explaining how the product will benefit the client’s business.
Seller Expressly Permitted to Share
The purpose of a letter of intent is for the seller to be able to share it with backers to raise the necessary resources to make the product or service a reality. Our letter directly addresses the ability of the offeror to do this, but also allows limits to be placed on disclosure if needed to the protect the prospective client.
Client Demands & Conditions
Specify product variants prices and quantities the client is interested in, and under what conditions (e.g. features, standards...). The more specific, the more likely the ultimate sale, and the more tangible the interest shown to backers.
Include Optional Exclusivity Period
Early adopters often get a better deal, like better pricing or more tailoring to their needs. In return, sellers may ask the prospective buyers not to shop for alternatives for a limited time so they can rely on their interest. Our letter allows you to provide for this at a click.
Protection of seller and product information
Sellers often give prospective clients a sneak peak of the product and business terms, which can be sensitive information. Our Letter includes binding obligations for the client to keep confidentiality and only use the information for the purpose shared.
Letters of Intent are not intended to be a legally binding commitment to purchase. These letters are meant to help a seller gather interest in a product pre-launch so they can raise funding / other resources. This is clearly stated in the Letter to re-assure prospective buyers of their level of commitment at this early stage.