Term Sheet template for Series A rounds in MENA ecosystem

If January was a trial month, would you cancel your annual subscription?

Back to reality. Those of you who didn’t intercept Clara releasing their updated Term Sheet for Series A investments – I got you covered.

Their Term Sheet provides a balanced and fair draft of key terms and conditions, endorsed by various venture capital firms, investors and law firms in the Middle East, including Arzan VC, 500 Startups , Wamda ???? , Middle East Venture Capital Association and Taylor Wessing .

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Term Sheet template for Series A rounds in MENA ecosystem

Founders, you’re all well-aware that a term sheet is one of the most important documents that you will negotiate and sign, and so it’s super important that we are all aligned with the latest legal standards in our market.

Do you know what a good Series A Term Sheet looks like? And do you know what provisions are worth fighting for? (Short answer: Not just the valuation…)

Clara Technologies ' team took it on their shoulders to update their Term Sheet for Series A with the help of leading VCs and law firms in the region – and we thank Clara for spearheading this initiative.

Clara’s Term Sheet is what a Series A term sheet should look like with standard, clean and balanced terms. Remember that this is a template and it’s been developed for use in common law jurisdictions, such as ADGM, DIFC, the Cayman Islands and BVI.

Download your copy here .

You’ll notice that it comprises 37 sections, including Price (+ Valuation), Liquidation Preference, Anti-Dilution, Voting Rights, Conversion Rights and, equally crucial, Information Rights. Also, your Board composition will hint on your power dynamics and how much control the investor wants to exercise when it comes to operational decisions. (Note that Clara’s Term Sheet is non-legally binding, intended for discussion purposes only, with the exception of the last six of the 37 sections, which are binding.)

Schedule 1 presents Pre- and Post-Closing Cap tables, Schedule 2 outlines a sample list of Board Reserved Matters and Schedule 3 outlines a sample list of Shareholder Reserved Matters.

A serious last note: I’d say Clara's term sheet is very straightforward and it's a solid foundation to build on. Ping me if you got questions.

TL;DR (too long; didn’t read) Clara released a Term Sheet for Series A investments, which entails of standard, clean and balanced terms and conditions, endorsed by various venture capital firms, investors and law firms in the Middle East, including Arzan VC, 500 Startups, Wamda, MEVCA and TaylorWessing. Link in the text.

This article was originally published by Arzan Venture Capital in its January 2024 Newsletter . You may subscribe to the newsletter here .