Equity Financing Term Sheet

Draft Venture Equity Term Sheets in Minutes, Not Hours

12 minutes with CaseMark

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12 minutes with CaseMark

What you'll need

Deal Facts Summary
Pre-Financing Cap Table
Governance & Rights Preferences

SOC 2 Type II · HIPAA compliant · $5 free credit

Workflow

Overview

CaseMark's Equity Financing Term Sheet skill transforms raw deal facts, cap table data, and governance preferences into a comprehensive, investor-grade term sheet ready for negotiation. Covering everything from pricing and dilution analysis to protective provisions and closing mechanics, it produces a professionally structured document aligned with U.S. venture capital conventions.

Drafting venture equity term sheets manually requires painstaking attention to dozens of interdependent provisions—pricing, dilution math, liquidation waterfalls, governance rights, and transfer restrictions. A single inconsistency between sections can derail negotiations or create costly ambiguities in definitive documents downstream.

CaseMark's AI ingests your deal parameters, validates inputs against required term sheet sections, and generates a complete, internally consistent document in minutes. Every placeholder is clearly marked, every calculation is cross-referenced, and the output is structured to flow directly into definitive agreement drafting.

How it works

1. Upload your deal facts, cap table, and governance preferences
2. AI validates inputs, flags gaps, and maps data to term sheet sections
3. Review the fully structured, negotiation-ready term sheet with highlighted placeholders
4. Export in your preferred format (DOCX, PDF)

What you get

Header & Parties
Definitions
Economics & Pricing
Preferred Stock Rights
Governance & Board Composition
Investor Rights & Protections
Transfer & Liquidity Rights
Closing Mechanics & Conditions Precedent

What it handles

Generates complete term sheet covering economics, governance, investor rights, and closing mechanics
Calculates dilution impact and ownership percentages from cap table inputs
Applies standard protective provisions with customizable anti-dilution and liquidation preference terms
Structures ROFR, co-sale, pro-rata, and registration rights sections
Flags missing inputs with clear placeholders for follow-up
Produces negotiation-ready output aligned with NVCA conventions

Required documents

Deal Facts Summary
Round metadata including series name, lead investor, raise amount, pre-money valuation, and price per share inputs
.pdf, .docx, .txt
Pre-Financing Cap Table
Current capitalization showing common shares, preferred shares, option pool, warrants, convertible instruments, and reserved shares
.pdf, .docx, .xlsx, .csv
Governance & Rights Preferences
Desired board composition, protective provision scope, anti-dilution type, liquidation preference structure, and investor rights parameters
.pdf, .docx, .txt

Supporting documents

Existing Charter & Bylaws
Current certificate of incorporation and bylaws to ensure consistency with existing corporate governance
.pdf, .docx
Prior Financing Agreements
Previous round term sheets, stock purchase agreements, or investor rights agreements for reference and consistency
.pdf, .docx
Convertible Instrument Summaries
Outstanding SAFEs, convertible notes, or other instruments that will convert in the financing round
.pdf, .docx, .xlsx

Why teams use it

Reduce term sheet drafting time from hours to minutes while maintaining institutional quality

Ensure consistency across economics, governance, and rights sections with automated cross-referencing

Minimize errors with built-in validation that flags missing inputs and data conflicts

Accelerate deal velocity by delivering negotiation-ready documents to counterparties faster

Questions

What information do I need to generate a term sheet?

You'll need the company's legal name and jurisdiction, round details (series name, lead investor, raise amount, valuation), a pre-financing cap table, and governance preferences. CaseMark flags any missing fields with clear placeholders so you can fill gaps later.

Does CaseMark follow NVCA or other standard term sheet formats?

Yes. CaseMark's output follows conventions consistent with NVCA model term sheets, covering all standard sections from economics through closing mechanics. You can customize any provision to match your deal's specific requirements.

Can it handle different anti-dilution and liquidation preference structures?

Absolutely. CaseMark supports broad-based weighted average, narrow-based weighted average, and full ratchet anti-dilution, as well as participating and non-participating liquidation preferences with customizable caps.

How does the AI handle missing cap table data?

When cap table data is incomplete, CaseMark generates a skeleton structure with clearly marked placeholders and flags the draft as incomplete for those economics sections. This ensures you never miss a critical data point.

Is the generated term sheet legally binding?

No. The output includes a standard non-binding notice in the header, consistent with market practice. It's designed as a negotiation document that your legal counsel can refine before execution.

Can I use this for convertible note or SAFE rounds?

This skill is specifically designed for priced equity rounds (Series Preferred). CaseMark offers separate workflows for convertible instruments. This tool is ideal when you've agreed on a valuation and need a structured preferred stock term sheet.