Legal Documents for your business

Term Sheet - Investor

Your first document is free with Lawpath

Create document

This legal document has been provided by Lexis Nexis

Term Sheet - Investor

Term Sheet - Investor

eSign with Lawpath
4.6 (12)
Under 10 minutes
Under 10 minutes
Last updated December 2018
Last updated July 8, 2020
Suitable for all Australian states and territories
Suitable for all Australian states and territories

A Term Sheet establishes the general terms of an investor joining your business. Customisable and ready to use in under 10 minutes.

Get started

Document Overview

This Term Sheet is used for early stage startups in the lead up to Seed Round Investment. This document establishes the general terms of an investor coming on board in your business and to make sure each party does their due diligence. It sets out the proposed terms including capitalisation, financing terms like liquidation preferences and anti-dilution, and key provisions to be included in the shareholders and subscription agreements, before you proceed to the full agreement. While the clauses binding the Term Sheet (i.e. confidentiality, exclusivity, enforceability and costs) are legally binding, the negotiated terms are not. This Term Sheet is intended to be used as a precursor agreement to a Shareholders Agreement.

Use this Term Sheet if:

You are preparing for Seed Round investment and would like to set out the negotiated and key terms to an investor to join your business.

Why do I need a Term Sheet?

If you are launching your seed investment round and looking at investors coming on board to join your business (such as an angel investor), a Term Sheet is a great document as a pre-cursor to a Shareholders Agreement. It sets out the negotiated terms and clearly states the intention of both parties to enter into a legally binding agreement in the near future.

What does the Term Sheet cover

  • Details of investor
  • Investment round details
  • Class of shares (preference shares or ordinary shares)
  • Number of shares
  • Investment amount
  • Price per share
  • Percentage of equity
  • Liquidation preference
  • Conversion mechanics
  • Anti-dilution 
  • Dividends provision
  • Share cap table
  • Timetable to complete agreement
  • Key provisions of shareholders and subscription agreements
  • Details of board members
  • Details of shareholders
  • Decisions that need resolutions
  • Exclusivity
  • Confidentiality

Other documents you may need:


Document Reviews

No reviews available.

How it works

Follow the steps below and you’ll have your ready-to-use document in no time.

Step 1

Set up a free Lawpath account

Step 2

Search and find the document you need from our list

Step 3

Follow the prompts and fill in all the relevant details

Step 4

Download your document in ready-to-use PDF or Docx* format. Access from any device, at anytime.

A giant library of template documents combined with a legal marketplace make this a must have for any small business owner.
Jake Benjafield

Create and access documents anytime, anywhere by signing up to our monthly or annual subscription plan

Sign up now

Recent Articles

Recent Articles

How to Start a Forestry Business

To run a forestry business, knowledge of relevant legislation, licences and business basics is necessary. Find out all you need to know in this article.

How to Start a Lead Generation Business

Interested in starting a lead generation business? Keep reading to find out how.

The Difference Between Indemnities and Insurances

Indemnities and insurances are a means of managing risk and transferring financial losses. However, they differ in the manner they shift the risk.
Not sure what you need?
Call and speak to one of our
consultants for free on
1800 529 728
Australia’s leading
Online legal website

Lawpath has been recognised as a
leader and innovator across the legal
sector.

Safe and Secure

We keep all your information
encrypted to ensure your
privacy and safety.