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Series Seed Preferred Stock
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Refactor Series Seed - Term Sheet.md #46

Closed daslee closed 6 years ago

daslee commented 6 years ago

Term sheet that Refactor Capital prefers to use when investing in a company. The goal is to preserve the economics and structure of SAFE with clarity on ownership and other rights.

Proposed changes:

-No option pool -Removed rights to block M&A -Included requirement that Major Investors receive a Management Rights Letter (now standard in many financings, see here: https://nvca.org/no-access/download-id/5070/) -Removed Board of Directors -Removed founder vesting.

rickcolosimo commented 6 years ago

Why should these changes be made to the form term sheet? For example, a term sheet without a summary of the proposed board seems like a term sheet that will create problems at a more expensive part of the process. What would be the countervailing benefit so that people can evaluate the choice?

daslee commented 6 years ago

Yeah, I f'd up. I don't want these to necessarily be incorporated into the standard docs. These are just a version that we prefer using at Refactor. My bad.