TechStars Shares Their Seed Funding Documents as Model for Others
Today, David Cohen (@dgcohen23) from TechStars did many an entrepreneur a favor by doing a blog post that shares the model documents that they use for seed funding startups.
The documents shared are as follows:
- Term Sheet: describes the basic agreements about the investment.
- The Restated Articles (of incorporation): are typically needed to properly document the existence and treatment surrounding the new class of preferred stock.
- The Bylaws: describe in detail how the corporation will be governed.
- The Subscription Agreement: documents the actual investment.
- The Board Member Election Consent: elects the board member representing the investors.
In the post David, offers for other to use them as models “…but please do so responsibly only after retaining your own legal counsel. Don’t use these documents blindly.” Sound advice.
The guys at TechStars have always done a great job of trying to educate entrepreneurs or would-be entrepreneurs about the facts and fiction of starting a business. While I’ve never met them, I’ve learned a lot by following them. They also remind people that there are great tech ideas and leaders in between New York and San Francisco.
Thought this was worth noting and passing on.
