Fundraising
1. Term Sheet
A term sheet is a non-binding agreement outlining the basic terms and conditions of the investment deal between the company and its investor. A term sheet is the very first document shared between you and your investor. This document is crucial to attracting investors, contact us to ensure you make a good first impression.
2. SAFE
Simple Agreement for Future Equity (SAFE) is often used to help raise capital in a quick and efficient manner. Essentially, a SAFE note acts as a legally binding promise to allow an investor to purchase a specified number of shares for an agreed-upon price at an agreed upon conversion event.
Contact us for help with your SAFE documentation.
3. Shareholder's Agreement
A shareholders’ agreement, is an arrangement among shareholders that describes how a company should be operated and outlines shareholders’ rights and obligations. The agreement also includes information on the management of the company and privileges and protection of shareholders.
This is an important document in case it is a direct equity investment.
Contact us to get a shareholding agreement tailored for your business.
4. Share Subscription Agreement
A share subscription agreement lays out the terms for the purchase of shares in a company.
A useful document as it clearly records the terms on which a person (the subscriber) agrees to purchase shares from the company. It is therefore advised that you get such an agreement drafted professionally.
Email us to get free quotes for our services.
5. Convertible Note
A convertible note is a way for investors to invest in a startup that isn’t ready for valuation. They start as short-term debt and are converted into equity in the issuing company. Investors loan money to the startup and are repaid with equity in the company rather than principal and interest. The convertible note is automatically changed into equity once a specific milestone has been reached, usually when the company is officially valued for later investments.
A convertible loan note (also known as a convertible note, or CLN) is a type of short-term debt that is converted into equity shares at a later date. Making an investment into a startup via a convertible loan note typically allows the investor to receive a discounted share price based on the company’s future valuation.
Convertible notes can be confusing for startups. Contact us for further help.
