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

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.

More details

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.

This petition is closed This petition ran for 6 months

10 signatures

Show on a map

10,000

Date closed 20 February 2021
Get petition data (json format)

About petition data

The data shows the number of people who have signed the petition by country as well as in the constituency of each Member of Parliament. This data is available for all petitions on the site. It is not a list of people who have signed the petition. The only name that is shared on the site is that of the petition creator.