Fundraising & Investment Documentation

Guide South African startups through term sheet negotiation and shareholder agreements.

1|Updated Apr 1, 2026
One-click install
npx skills add https://github.com/2nth-ai/skills --skill fundraising-investment-documentation
Or copy as Structured Prompt for Agent
Please help me install this Agent Skill.
Skill: Fundraising & Investment Documentation
Source: https://github.com/2nth-ai/skills/tree/main/leg/fundraising
Command: npx skills add https://github.com/2nth-ai/skills --skill fundraising-investment-documentation

SYSTEM DOCUMENTATION & REQUIREMENTS

💡 This Skill includes scripts (resource) and references (resource) components.

What problem does it solve?

This Skill provides comprehensive legal guidance on investment documentation for founders in South Africa, including term sheets, shareholder agreements, and cap table management.

Core Features & Use Cases

  • Investment Documentation: Detailed explanations and templates for term sheets, shareholder agreements, and SAFE notes.
  • Legal Framework: Analysis of relevant South African legislation, such as the Companies Act and Financial Markets Act.
  • Use Case: For founders navigating their first investment round, this Skill offers a step-by-step guide to the legal aspects of fundraising, including valuation, share classes, and investor rights.

Quick Start

Analyze the legal implications of a term sheet for a South African startup with a pre-money valuation of R20m and an investment of R5m.

Frequently Asked Questions about Fundraising & Investment Documentation

High-intent search queries and answers about installing and using this skill.

FAQPage Schema
How do I draft a term sheet for a South African startup raising its first investment round?

Drafting a term sheet for a South African startup involves structuring valuation, share classes, and investor rights under the Companies Act 71 of 2008. This Skill provides step-by-step legal guidance and templates for term sheet negotiation tailored to local fundraising processes.

What is the legal framework for shareholder agreements and cap table management in South Africa?

The legal framework for shareholder agreements and cap table management in South Africa is governed by the Companies Act 71 of 2008 and the Financial Markets Act 19 of 2012. This Skill analyzes these regulations to help founders structure investment documentation and maintain compliant cap tables.

How do I calculate post-money valuation and cap table dilution for a R5m investment on a R20m pre-money valuation?

To calculate post-money valuation for a R5m investment on a R20m pre-money valuation, you analyze equity dilution and share allocation under South African corporate law. This Skill provides the legal framework to assess how such investment structures impact your cap table and shareholder rights.

Can I use SAFE notes for investment documentation under South African corporate law?

Yes, you can use SAFE notes for investment documentation under South African corporate law. This Skill provides detailed explanations and templates for SAFE notes, ensuring your fundraising instruments comply with the Companies Act 71 of 2008 and relevant financial regulations.

What should I include in a shareholder agreement to protect founder rights during a capital raise?

A shareholder agreement protecting founder rights during a capital raise must include specific provisions for share classes, investor rights, and term sheet conditions. This Skill offers legal guidance on structuring these agreements in compliance with South African investment legislation.

When do I need to formalize a term sheet into a binding shareholder agreement in South Africa?

You need to formalize a term sheet into a binding shareholder agreement in South Africa once investment conditions are settled and before finalizing the capital raise. This Skill guides founders through transitioning negotiation terms into legally compliant investment documentation under the Companies Act.