Know what your investment term sheet is really asking for

This is commonly used by founders and startup teams who have already received a draft term sheet from an investor and want to understand its practical impact before accepting the headline deal. It is especially useful where the draft includes detailed control rights, preference terms, founder restrictions or conditions that may carry through into the long-form documents. If you are not looking for a new term sheet to be created, but instead want a careful review of the one on the table, this service is generally the better fit.

Valuation is important, but it is rarely the only issue. Clauses around board composition, reserved matters, investor consent rights, liquidation preferences, anti-dilution, founder vesting, information rights, exclusivity and conditions precedent can all have a major effect on how the company operates after the round. We look at how those provisions work together, not just whether they appear in the draft. That can be particularly important where a term sheet looks standard on its face but shifts control or economics more than expected.

The difference is mainly in the job being done. This page is about reviewing a draft that already exists and giving you structured feedback on the legal and commercial issues it raises. A broader fundraising term sheet service is more suitable where the term sheet itself still needs to be created, shaped or reworked from the ground up. If you already have investor paper in front of you and need to understand it before the deal moves ahead, a review service is usually the more direct option.

The main document is the current term sheet draft, including any tracked changes or side emails that explain proposed amendments. It also helps to provide short background on the round, such as the investor type, whether this is a seed or later-stage raise, and whether there are existing shareholder arrangements that may interact with the new terms. If there are unusual features like multiple closings, founder secondary sales or side arrangements, flagging those early can help us identify whether the draft raises extra issues.

Most founders use the review to decide which provisions they are comfortable with, which ones they want to renegotiate and whether the overall structure still works for the business. You might go back to the investor with comments on governance rights, preference wording, founder restrictions or closing assumptions. If the term sheet changes materially, you may want a further review of the revised draft. If the round proceeds into subscription and shareholder documents, that would usually move into a separate stage of legal work.

As an online law firm, we eliminate the headaches of paying us by the hour and finding time to meet with a lawyer in person. We charge a fixed fee, with upfront quotes and transparent pricing, and communicate via phone, email and video chat - whichever suits you! You'll be guided through our process by our expert lawyers, who are Australian-qualified and specialise in technology, intellectual property, contract drafting, corporate and commercial law.

At Sprintlaw, our pricing is transparent and designed for startups and small businesses. Many one-off legal services, including document drafting and reviews, are provided for a fixed fee with an upfront quote before you proceed.

Prices typically range from $250 to $2,500 AUD depending on the complexity and scope of the work. For ongoing support, Sprintlaw Memberships include options such as legal templates, consultations, a legal helpline and credits for services.

If your project is larger or more complex, we will provide a tailored quote after understanding what you need.

Our law firm operates completely online, which means we can help you wherever you are in Australia. We work at The Commons Central - a cool co-working space in Chippendale, Sydney - but our lawyers often work flexibly across various locations.

Our lawyers also work from co-working spaces and home offices in Sydney, Melbourne, Brisbane, Adelaide and Perth, so clients can get help online without needing to meet in person.