Seed Phase: As soon as you start launching external financing, you`ll probably come across venture capital account sheets and related agreements. The calendars present the details of the financing of the investors you receive, and they are displayed in a variety of forms, depending on the funding cycle that challenges them and the venture capital firm from which they come. Docracy hosts a series of terminology sheets and related documents from high-end incubators and VCs with which you can familiarize yourself and use them in your fundraising activities:Series Seed: It`s a simple terminology sheet for use when a company accepts the capital of friends and family seed investors. 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). 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. These types of agreements are used by entrepreneurs, large law firms and investors at all stages of start-up creation and financing, from the development of ideas to the sale of shares and banknotes. Ideas Phase: For example, if you and a friend are working on an idea that could turn into a start-up, you can sign a cooperation contract with the founders, in which you will expose your working relationship, confirm the expectation that the work you are doing together will belong to a future entity, and outline steps of communication and conflict resolution that you will take to get you through all the quarrels that may occur. If you invest money in your potential business, you can sign a business creation contract (or a joint purchase agreement if you already have a contract) outlining precisely how much money each founder invests in the potential business, what shareholding everyone receives one after the other and who owns the intellectual property that was created. If you have a mentor or advisor, you can sign a standard model for the founding advisors with them and determine how they will help you and what compensation they will receive. Early stage: When you find a small amount of capital to start things, usually by friends, family or angels, it is customary to use convertible bonds, starting with a convertible credit note sheet and a Memorandum of Terms for Sale of Convertible Promissory Notes.
There are a number of major sources of documentation.