Series Seed equity financing documents have become one of the “go-to” sets of documents for many early-stage equity financings. Generate your own set of Cooley's version here.
In a corporation, “equity” is often used to refer to the corporation’s outstanding stock and stock options.
KISS ("Keep It Simple Security") is the latest generation of convertible debt and convertible equity financing forms from 500 Startups. Generate your custom forms now.
Download the core set of documents that our Delaware public benefit corporation startup clients generally need in connection with their initial incorporation, including a certificate of incorporation, bylaws, stock purchase documents, and more.
Click here for an overview of all available document generators.
Issuing convertible notes is one of the most popular ways for startups to raise initial seed funding. Generate your own set of Series Seed Convertible Note Package here.
A limited liability company (LLC) is a business structure that combines the pass-through taxation of a partnership with the limited liability of a corporation.
Series financing refers to the rounds of equity venture capital financing that startup companies pursue.
Series FF Stock is a hybrid between Common Stock and Preferred Stock, and is typically issued to founders at the time of incorporation
A public offering is a sale or equity shares or debt shares by an organization to the public in order to raise funds for the company.
KISS (“Keep It Simple Security”) is a term used by 500 Startups that describe short “open source” documents that have been drafted for use in early-stage private company financing deals.
An offer letter is a letter given by a company to an potential employee that provides key terms of the propsective employee’s employment.
An option pool is a number of shares of stock reserved for issuance to service providers of a company pursuant to options and other equity incentives.
Post-money valuation is a term used widely in private equity and venture capital financing negotiations, and refers to the valuation of the company following a financing transaction.
Pre-money valuation is a term used widely in private equity and venture capital financing negotiations, and refers to the valuation of the company prior to a financing transaction.
“Fully diluted” shares are the total common shares of a company counting all currently issued and outstanding, plus shares that could be issued through the conversion of convertible preferred stock or through the exercise of outstanding options and warrants.
“Discount shares” is a term sometimes used to describe the shares issued upon conversion of a convertible note or SAFE in respect of the portion attributable to the discount rate/conversion price discount.
A cap table is a list of your company’s equity securities, including stock, options and warrants, that identifies how many shares are outstanding and who owns those securities
Units of equity ownership in a corporation entitling their holder to a share of the corporation’s success through dividends and/or capital appreciation.
A company-sponsored liquidity transaction occurs when a private company buys its employees’ equity in the company. It has become more common in recent years as many startups choose to stay in private hands longer.
A conversion price cap is the maximum valuation at which convertible debt or SAFEs convert at the time of the financing resulting in the conversion, regardless of the valuation agreed to by the company and the new equity investors.
A convertible note is an investment vehicle often used to facilitate investing in a company without establishing a valuation. Convertible notes are loans that generally later convert into equity.
A buy-out is a contractual clause in which the company or other investors can buy out the equity of another stock holder.
Section 409A of the Internal Revenue Code is a complex and often counterintuitive set of tax rules applicable to deferred compensation.
A Section 83(b) election is a letter you send to the IRS letting them know you want to be taxed on your unvested equity, such as shares of restricted stock, on the date you acquired the equity rather than on the date the equity vests.
If certain events occur (specified by contract), stock vesting can be accelerated so that the stockholder actually owns more equity than the normal vesting schedule would dictate.
Startup accelerator Y Combinator (commonly referred to simply as “YC”) released a set of financing documents (referred to as "Safe", or "Simple Agreement for Future Equity"). They come in a few different flavors, all of which we present here.