· With minor manipulations, Series Seed allows several board structures without tormented and non-functional agreements (a real problem for convertible debt documents); and there are no standard conditions that apply to seed investor investments – these types of investments can often be relatively informal and generally do not involve investor protection rules demanded by professional investors or formal investor groups such as angelic groups. Regardless of the fundamental need to trust each other, the founders should have a very clear understanding of what it takes to change the shareholder contract and the structure of the shares in the future. It is a free collection of essential rights models for the creation and financing of startups, which are provided by startup lawyers, venture capital firms and accelerator programs. From an investor`s perspective, the abandonment of traditional high-value-added financing documents means that, in many transactions, a number of intellectual property rights and rights must be abandoned, the benefits of spending less time and money on documents outweigh the cost of sacrificing these additional rights and protections. Furthermore, I do not think that these documents contain (or exclude) anything that is the subject of extremely controversial debate. Based on discussions with many practitioners, I think these documents are largely a consensus on what should be included in the key documents. In addition, I intend to make the documents „open source“ so that they can be continuously improved by the proposals of the community. The Seed Documents series was an attempt to take a more modern technological approach to seed financing. By creating a simple public standard, we hoped to help reduce the time and cost of these transactions. With version 3.0, we`ve tried to go even further in that direction, creating a series of documents that are easier to use and storing these documents in a place where they can grow and spread more efficiently. I chose the latter approach for a number of reasons. First, I thought it would be best to make these documents as simple as possible.
Second, I wanted the documents to be readable (readable as opposed to the lawyer) and there are some provisions of a vanilla set of Series A funding documents that are simply too dense for most civilians to pass through (for example. B, price-based dilution). Third, while simpler documents require more optimization in the next funding cycle, the next funding cycle should be a larger cycle of resources in which such investments would be appropriate. Let`s say that using simpler documents saves 10% of the time and money associated with seed financing. Even though it takes 20% extra time to add a full set of rules to the next round, it`s a good deal, because (a) less than 50% of sperm-financed companies arrive in the next round, and (b) the dollars in the next round are cheaper at that time, because it is a larger fundraiser. It is a simple term sheet for use when a company takes the capital of friends and investors from family seeds. It sets out the terms agreed between the company and the investor before the formal agreements are prepared. The concept sheet is not legally binding (with obligations other than confidentiality in Part B). Most Engel concept sheets contain basic confidentiality obligations (especially when proposed investors have not signed a confidentiality agreement). Angel Investing almost always requires a shareholder pact between the founding group and new investors. When reviewing or drafting a proposal, keep these fundamental points in mind: as a result, I have added in this article a sample of serial seed documents containing a traditional set of funding rules.