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Term Sheet for Equity Financing

Draft Series A Term Sheets in Minutes

12 minutes with CaseMark

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Term Sheet for Equity Financing

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Workflow

Term Sheet for Equity Financing

Overview

Drafting equity financing term sheets manually requires hours of careful attention to complex provisions like liquidation preferences, anti-dilution formulas, and protective rights. Corporate attorneys must balance competing investor and founder interests while ensuring every economic and governance term is precisely articulated, often working late nights to meet tight deal timelines.

Drafting comprehensive term sheets for equity financing requires balancing complex economic terms, governance provisions, and investor protections while ensuring nothing is overlooked. Manual drafting takes 6-10 hours of attorney time and costs $4,000-$8,000, with significant risk of missing market-standard provisions or creating ambiguities that derail negotiations.

CaseMark analyzes your cap table, investor correspondence, and deal parameters to generate complete, negotiation-ready term sheets in minutes. Our AI incorporates market-standard VC terms, calculates valuations and ownership percentages accurately, and ensures all critical provisions—from liquidation preferences to anti-dilution protection—are properly structured.

How it works

  1. 1. Upload your documents

  2. 2. AI analyzes and extracts key information

  3. 3. Review and customize the generated content

  4. 4. Export in your preferred format (DOCX, PDF)

What you get

  • Introduction and Statement of Intent

  • Offering Terms (Amount, Security Type, Valuation)

  • Series A Preferred Stock Terms

  • Dividends and Liquidation Preferences

  • Conversion Rights and Anti-Dilution Protection

  • Voting Rights

  • Board Composition and Governance

  • Protective Provisions

  • Information and Registration Rights

  • Right of First Refusal and Co-Sale Rights

  • Pro Rata Participation Rights

  • Closing Conditions and Exclusivity Terms

What it handles

  • Introduction and Statement of Intent

  • Offering Terms (Amount, Security Type, Valuation)

  • Series A Preferred Stock Terms

  • Dividends and Liquidation Preferences

  • Conversion Rights and Anti-Dilution Protection

  • Voting Rights

  • Board Composition and Governance

  • Protective Provisions

  • Information and Registration Rights

  • Right of First Refusal and Co-Sale Rights

  • Pro Rata Participation Rights

  • Closing Conditions and Exclusivity Terms

Required documents

  • Capitalization Table

    Current cap table showing all outstanding equity, options, warrants, and fully-diluted ownership percentages

    .xlsx, .csv, .pdf

Supporting documents

  • Previous Financing Documents

    Prior term sheets, stock purchase agreements, or certificates of incorporation showing existing investor rights

    .pdf, .docx

  • Investor Correspondence

    Email exchanges or letters of intent outlining proposed valuation, investment amount, and key terms

    .pdf, .docx, .eml

  • Board Resolutions

    Current board composition and any resolutions authorizing the financing round

    .pdf, .docx

  • Financial Projections

    Business plan, budget, or financial model supporting the proposed valuation

    .xlsx, .pdf

Why teams use it

Generate complete Series A term sheets in 12 minutes vs. 4+ hours manually

Ensure all standard provisions included: liquidation preferences, anti-dilution, voting rights, and protective provisions

Choose from market-standard options for participating vs. non-participating preferred and weighted average anti-dilution

Customize board composition, investor rights, and governance terms with guided prompts

Maintain deal momentum with rapid turnaround on first drafts and negotiation revisions

Questions

What information do I need to generate a term sheet?

At minimum, you need your current capitalization table showing all outstanding equity and options. Ideally, upload any investor correspondence outlining proposed valuation and investment amount, plus any prior financing documents if this isn't your first round. CaseMark will extract specific deal terms from these documents and use them instead of generic placeholders.

How does CaseMark handle complex provisions like liquidation preferences and anti-dilution protection?

CaseMark drafts complete provisions with proper formulas and mechanics, including participating vs. non-participating preferences, participation caps, and broad-based weighted average anti-dilution protection. The system includes numerical examples showing how proceeds distribute in different exit scenarios, ensuring founders understand the economic implications of each structure.

Can I customize the term sheet for different types of financing rounds?

Yes. CaseMark adapts to Series A, B, C, and later-stage rounds, adjusting provisions based on the series designation and existing investor rights. You can specify whether you want founder-friendly or investor-friendly terms, and customize board composition, protective provisions, and investor rights thresholds to match your specific negotiation.

Are the term sheets legally binding?

Like all professional term sheets, most provisions are non-binding expressions of intent, but specific sections—confidentiality, exclusivity, expense reimbursement, and governing law—are drafted as legally binding and enforceable. The document clearly identifies which provisions are binding and includes appropriate signature blocks for execution by the company and lead investor.

How much does CaseMark save compared to having attorneys draft term sheets manually?

Manual term sheet drafting typically requires 6-10 hours of senior attorney time at $400-$800/hour, costing $4,000-$8,000. CaseMark generates the same quality document in 12 minutes for a fraction of the cost. Attorneys can then focus on negotiation strategy and customization rather than drafting from scratch, reducing total legal spend by 60-70%.

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