equity-financing-term-sheet

name	equity-financing-term-sheet
title	Equity Financing Term Sheet
description	Drafts a U.S. venture equity term sheet from deal facts into a negotiation-ready, investor-grade document. Use when counsel or founders need a structured term sheet covering pricing, capitalization, liquidation preferences, anti-dilution, governance, investor protections, transfer/registration rights, and closing mechanics. Trigger: term sheet, equity financing, venture capital, series preferred, pre-money valuation, liquidation preference, pro rata, ROFR, co-sale, registration rights.
author	CaseMark
author_url	https://github.com/CaseMark/skills/tree/main/skills/legal/equity-financing-term-sheet
license	Apache-2.0
version	0.1.0
execution_mode	open
jurisdiction	us
practice	corporate
language	en

Equity Financing Term Sheet

Produces a complete US venture equity term sheet with minimal placeholders and consistency controls for follow-on definitive agreements. Assumes US corporate law (typically Delaware) unless stated otherwise.

Quick Start

Gather before drafting:

1. Company legal name and incorporation jurisdiction
2. Round metadata — series name, lead investor, raise amount, valuation inputs
3. Pre-financing cap table — common, preferred, options, warrants, convertibles, reserved pool
4. Governance baseline — board size, nominee rights, voting structure
5. Commercial boundaries — liquidation preference cap, anti-dilution type, board control limits
6. Existing charter, bylaws, and prior financing agreements

Mark anything unavailable as {{PLACEHOLDER: field name}}.

Core Workflow

1. Intake Validation

Map each input to its output section and flag gaps:

Input	Drives	If Missing
Company / jurisdiction	Header, governing law	{{PLACEHOLDER}}
Valuation / share price	Economics, ownership math	Flag — draft incomplete
Cap table	Dilution impact, conversion basis	Generate skeleton with placeholders
Rights matrix	Governance, protections	Insert defaults, mark for review
Closing preconditions	Conditions precedent, definitive docs list	List required docs by name

2. Draft (Hard Section Order)

1. Header — non-binding notice, date, parties, round summary
2. Definitions — Binding Provisions, Major Investor, Fully Diluted Capitalization, Registrable Securities, Qualified IPO
3. Economics — security type, OIP, pre/post FD basis, price per share formula
4. Preferred stock rights — dividends, liquidation preference, conversion, anti-dilution
5. Governance — board allocation, observer rights, protective provisions
6. Investor rights — information, inspection, registration (demand/piggyback)
7. Transfer and liquidity — ROFR, co-sale, pro-rata, exceptions
8. Closing mechanics — diligence, required agreements, conditions, timeline
9. Binding provisions — confidentiality, exclusivity, expense reimbursement, governing law, forum
10. Signature block

3. Validation Pass