I’ve been publishing sites with free legal documents for startups at DallasBlue Entrepreneurs. These have been compiled below. A current list of these docs will be kept here.
These documents are an excellent resource for entrepreneurs to familiarize themselves with what to expect in starting a company and seeking funding.
There is an imbalance in power between entrepreneurs with no money and investors with millions or even billions of dollars. It’s resulted in agreements with complex terms that give investors great power in the relationship and generate huge legal fees that average $50,000 per funding round.
These documents are typically written to simplify agreements, slash fees, and protect founders.
Note that we are not attorneys and are not providing legal advice. These documents should be used with caution and in consultation with your own legal counsel.
TechStars
Model Seed Funding Documents. Created by Cooley Godward Kronish, LLP. Includes Term Sheet, Restated Articles (of incorporation), Bylaws, Subscription Agreement, and Board Member Election Consent.
TheFunded Founder Institute, Adeo Ressi
Plain Preferred Term Sheet. This doc eliminates aggressive investor terms, such as participation with preferred stock, a 1x liquidation preference, and single trigger vesting acceleration on acquisition.
Wilson Sonsini Goodrich & Rosati
Term Sheet Generator. Generate a venture financing term sheet through an interactive questionnaire. It also has an informational component, with basic tutorials and annotations on financing terms.
