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Closed Make it illegal for investors to offer a term sheet without proof of funds.

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Currently investors are able to sign a term sheet (contract outlining the terms of a funding deal) with founders without having to prove they have the funds first.

Although a TS is not legally a promise to invest, it is a contract promising interest and due diligence with exclusivity periods meaning founders can't approach other investors. This means anyone can pretend to have life-changing sums of money to hand to a founder, should they choose to invest it. As a result, businesses can wait many months or even years for the funding to appear, ultimately bankrupting the business and in turn the founder.

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    If this petition gets 10,000 signatures, government will respond to it.

    If this petition gets 100,000 signatures, it will be considered for debate in Parliament.

    This petition will stay open until 20 February 2021.