Defining mission

Clearly defining social and/or environmental goals will align the interests of entrepreneurs and investors, and avoid potential misunderstandings down the road. Articulating the mission brings a shared understanding of what it is, and can surface differences in values and priorities between investors and the company. If the mission is not spelled out, both parties may think they have a shared understanding but turn out to be mistaken. In the investment term sheet, entrepreneurs can agree to define mission in relevant legal agreements and/or the company’s charter.