Term Sheet Templates in Cake

Cake doesn't currently offer a Term Sheet template, but we can help you get one created by connecting you with a legal partner.

Why You Might Need a Term Sheet

Term Sheets aren't required for every raise, but they're helpful when:

• Investors want to review investment terms before seeing full agreements

• You're working with sophisticated investors who expect detailed overviews

• You need to negotiate specific terms before finalizing documents

Term Sheets are generally not binding - they simply outline general terms for your Shareholders Agreement and Subscription Agreement. They're an effective way for you and investors to discuss any required changes before investing.

For example, an investor might want the right to appoint a director or ensure an ESOP is factored into your cap table - these details would be included in the Term Sheet.

Benefits for time-poor investors: Term Sheets provide a quick overview of the investment opportunity and existing company governance, which is particularly valuable for busy investors.

The process: Once a Term Sheet is agreed with an investor, all terms should be reflected in your Shareholders Agreement. The Shareholders Agreement becomes the binding document once finalized and signed.

Getting Help with Term Sheets

Cake partners with legal experts who can draft Term Sheets for your specific needs.

To connect with legal support, raise a support request and our team will introduce you to the most suitable legal partner for your Term Sheet requirements.