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.
This workflow is applicable across multiple practice areas and use cases
Term sheets are essential financing documents for any equity capital raise, including growth equity, mezzanine financing, and other corporate finance transactions beyond traditional VC deals.
Corporate finance attorneys regularly structure equity financing transactions across various stages and deal types, requiring term sheets with liquidation preferences, anti-dilution provisions, and investor rights.
Term sheets for equity financing must comply with securities regulations and establish registration rights, information rights, and other securities law compliance mechanisms.
Securities attorneys need to ensure equity financing term sheets include proper registration rights provisions and comply with private placement exemptions under securities laws.
Term sheets establish board composition, voting rights, and protective provisions that form the foundation of corporate governance structures for venture-backed companies.
Corporate governance attorneys need to draft and review equity financing terms that define shareholder rights, board structure, and decision-making authority, which are core governance mechanisms.
Liquidation preferences, anti-dilution provisions, and participation rights in term sheets directly impact M&A transaction economics and exit waterfall calculations.
M&A attorneys must analyze existing term sheet provisions to understand capital structure, calculate distribution waterfalls, and negotiate exit terms that account for preferred stock rights.
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.
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.
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.
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.
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%.