Equity Term Sheet

Draft Equity Term Sheets in Minutes, Not Hours

12 minutes with CaseMark

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Upload your documents and get a finished work product in minutes. New accounts get $5 free to run their first skill.

12 minutes with CaseMark

What you'll need

Company Information & Cap Table
Round Parameters
Governance & Deal Constraints

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

Workflow

Overview

CaseMark's Equity Term Sheet skill drafts comprehensive, deal-ready term sheets for U.S. preferred stock financing rounds. It produces a professionally structured document covering economic terms, governance provisions, investor rights, and protective provisions—complete with binding carveouts for confidentiality, exclusivity, expenses, and governing law. The output is suitable for immediate use in VC or PE investor negotiations across Series A, B, and C rounds.

Drafting equity financing term sheets is a time-intensive process that requires balancing dozens of interconnected provisions across economic, governance, and investor rights categories. Attorneys must ensure proper binding/non-binding structuring, accurate capitalization calculations, and market-standard default positions—all while customizing terms for the specific deal. A single oversight or inconsistency can derail negotiations or create unintended legal obligations.

CaseMark automates the heavy lifting of term sheet drafting by generating a complete, professionally structured document from your deal parameters and company details. The AI ensures consistent treatment across all provisions, properly separates binding and non-binding terms, and applies market-standard defaults that you can customize to match your negotiation strategy. The result is a deal-ready term sheet produced in a fraction of the traditional drafting time.

How it works

1. Upload your company details, cap table, and round parameters
2. AI structures the complete term sheet with economic, governance, and investor rights terms
3. Review and customize default positions, protective provisions, and binding carveouts
4. Export the finalized term sheet in your preferred format (DOCX, PDF)

What you get

Document Header with Company and Investor Details
Non-Binding / Binding Provision Split Table
Economic Terms (Valuation, Price Per Share, Use of Proceeds)
Fully Diluted Capitalization Definition
Preferred Stock Rights (Dividends, Liquidation, Conversion, Anti-Dilution)
Governance and Board Composition Terms
Investor Rights and Protective Provisions
Closing Conditions and Timeline
Binding Carveouts (Confidentiality, Exclusivity, Expenses, Governing Law)

What it handles

Structured non-binding/binding provision split with automatic carveouts
Complete economic terms including valuation, pricing, and capitalization tables
Preferred stock rights drafting with customizable default positions
Governance and board composition provisions tailored to round stage
Investor rights, protective provisions, and closing conditions framework
Binding confidentiality, exclusivity, expenses, and governing law clauses

Required documents

Company Information & Cap Table
Company legal name, jurisdiction of incorporation, current fully diluted capitalization table, existing charter/bylaws summary, and option plan details
.pdf, .docx, .xlsx
Round Parameters
Series designation, lead investor name, total raise amount, pre-money valuation or target price per share, and closing timeline
.pdf, .docx
Governance & Deal Constraints
Current board composition, existing investor rights agreements, major contracts or debt covenants, regulatory constraints, and expense cap expectations
.pdf, .docx

Supporting documents

Prior Round Term Sheets
Term sheets from previous financing rounds to ensure consistency with existing investor rights and preferences
.pdf, .docx
Existing Investor Rights Agreement
Current IRA or similar agreements that may affect new round terms and protective provisions
.pdf, .docx
Comparable Deal Terms
Market comparable term sheets or deal summaries for benchmarking economic and governance terms
.pdf, .docx

Why teams use it

Reduce term sheet drafting time from hours to minutes while maintaining deal-specific precision and market-standard structure

Ensure comprehensive coverage of all critical provisions—economic terms, governance, investor rights, and protective provisions—with nothing overlooked

Maintain clear binding/non-binding separation to protect clients during negotiations and avoid unintended obligations

Accelerate deal velocity by producing investor-ready documentation that serves as a reliable framework for definitive agreement negotiations

Questions

What types of equity financing rounds does this term sheet cover?

CaseMark's equity term sheet skill is designed for U.S. preferred stock rounds including Series A, B, and C financings. It supports both venture capital and private equity deal structures with customizable terms for each stage.

Which provisions are drafted as binding vs. non-binding?

CaseMark automatically structures the term sheet with binding carveouts for confidentiality, exclusivity/no-shop, expenses, and governing law. All economic, governance, and investor rights terms are drafted as non-binding, following market-standard practice.

Can I customize the default positions for preferred stock rights?

Absolutely. CaseMark provides market-standard default positions for dividends, liquidation preferences, anti-dilution, and other preferred stock rights. You can customize every term to match your specific deal parameters and negotiation posture.

How does CaseMark handle the capitalization table and pricing?

CaseMark calculates price per share based on your pre-money valuation and fully diluted capitalization. It includes a comprehensive fully diluted definition covering common stock, options, warrants, convertible securities, and other equity-linked instruments.

Is this suitable for both investor-side and company-side drafting?

Yes. CaseMark's term sheet can be drafted from either perspective. Whether you represent the lead investor or the issuing company, you can adjust protective provisions, governance terms, and economic defaults to reflect your client's position.

What information do I need to provide before generating the term sheet?

CaseMark requires company details (legal name, jurisdiction, current cap table), round parameters (series designation, total raise, pre-money valuation), and governance baseline (board composition, existing investor rights). The AI will prompt you for any missing information rather than making assumptions.