Standardized Term Sheets May Not Protect Your Interests
- Joshua Fox
An article by Joshua Fox, published by Law360, focusing on standardized and how they may inadvertently gloss over or neglect issues that can be critical to founders' long-term success.
Excerpt: Novelists stare at the blinking cursor on their blank screens. Anguished artists confront the empty canvas. Starting from scratch can be agonizing for creatives, but entrepreneurs who want to draft a or a definitive agreement for a financing don't have to wait for inspiration to strike. Even a quick internet search multiple versions of documents typically used for early-stage private financings. SeriesSeed.com has forms. So do Y Combinator and the National Venture Capital Association. These documents are often collaborations by investors, attorneys and entrepreneurs that have been fine-tuned in an attempt to create a batch of standardized forms that anyone can access point for exploring various terms and conditions. They can reduce the number of issues that you'll have to negotiate, and they can be a helpful springboard for discussions with potential investors. Read the full article.