Johannesburg, South Africa, 20 July 2025 – In a landmark move to strengthen South Africa’s venture capital (VC) ecosystem, a new industry-led initiative has been launched to develop a suite of standardised legal documents tailored specifically for the local VC market.

Spearheaded by a coalition of leading VC funds and legal professionals, the initiative aims to create open-source, best-practice legal templates that mirror globally recognised standards, particularly those used in the US, while being firmly grounded in South African legal and regulatory frameworks.

“This initiative is a game-changer for the South African VC industry. It will save time and legal costs, improve transparency for all parties, and ultimately help attract more local and international capital into early-stage businesses,” said Adrian Dommisse, Founding Director of Dommisse Attorneys Inc.

Sign up to one of the working groups.

Purpose-Driven and locally relevant

The initiative is guided by three key objectives:

• To improve efficiency and consistency in venture capital transactions across South Africa;
• To align with international investor expectations through familiar frameworks and terms;
• To build local legal capacity by creating accessible resources and training opportunities for lawyers entering the VC space.

Phase one: Building the Core

The first phase of the project is already underway and will deliver three foundational legal documents:

• Memorandum of Incorporation (MOI)
• Shareholders Agreement (SHA)
• Subscription Agreement

These documents are being adapted from widely used, open-source US templates –primarily the NVCA suite, stripped of jurisdiction-specific language and tailored to South African commercial and legal norms. Importantly, neutrality is a cornerstone of the drafting process, with no single law firm’s style dominating, ensuring broad industry acceptance.

Collaborative legal and investment leadership

Two dedicated working groups, comprising top-tier VC investors and seasoned lawyers, have been formed to steer the process. Their mandate includes:

• mapping international best practices to local frameworks,
• aligning on commercially standard terms, and
• ensuring legal robustness and accessibility in all outputs.

A model Term Sheet will accompany the suite and act as the conceptual “index” for all documents. Working groups will produce and refine each document with a strong emphasis on plain language, usability, and the consolidation of defined terms.

Looking ahead

Once finalised, the legal document suite will be made freely available to the industry –empowering startups, investors, and emerging legal professionals alike. A second phase is already under consideration to expand the library to include additional documents such as intellectual property assignments, director indemnities, and more, based on user feedback and evolving market needs.

This initiative represents a major milestone in South Africa’s journey towards a more scalable, efficient, and globally aligned innovation ecosystem. It promises to lay the legal groundwork for a new generation of high-growth, investable startups.