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Los Angeles Cleantech Incubator (“LACI”) does not assume any responsibility for any consequence of using these legal documents. LACI does not endorse or recommend the use of these documents themselves without legal counsel. Deal terms should be negotiated based on your specific circumstances. You should consult with an attorney before relying on any legal documents, especially if you don’t understand any of their terms. Review carefully and use at your own risk. You are responsible for ensuring that all necessary securities filings, if any, are prepared and filed.
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A SAFE (simple agreement for future equity) defers major terms of an investment to be executed at a later date after a major financing event. It was developed by Y Combinator to structure future equity agreements. SAFEs do not have any interest and there is no automatic expiration date.
KISS (Term Sheet, Agreement)
KISS is an open source platform developed by 500 Startups to create flexible and simple templates to structure convertible equity financing round. The two main versions are the equity structure and the debt structure, so be sure to read through the summary to know what is appropriate for your organization.
Royalty Based Equity Investment Term Sheet
Another way in which organizations can raise funds on potential future earnings of their company, and pay out in the form of dividends. Use this document to structure terms of understanding*.*
Unlike the other financing structures on this list, a Series Seed Document allocates actual equity at an early stage. This establishes a baseline for investors and founders to serve as a negotiating point for later seed rounds.
Convertible Note Term Sheet Sample
A convertible note is a funding vehicle that can be thought of as a short-term loan, which can later be transferred into an equity stake at a funding milestone.
Review this document to understand the elements of a complete convertible note agreement.
Stock allocation can fundamentally be thought of as a relative share of ownership, but the type privileges or restrictions vary on the type of shares being granted. Review this sheet to understand the benefits and limitations regarding preferred shares.
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This document is a template sample of a Letter of Intent. This type of legal documentation is outlined to typically used to formalize a legally binding agreement between two or more parties. The concept is similar to a memorandum of understanding.
The NVCA Model Legal Documents serve as the industry-embraced model documents to be used in venture capital financings.
Capitalization Tables are a ledger to delineate the allocation of equity ownership at a company. A clean cap table from the onset can be a huge time saver. Having cap table management software also demystifies round modeling for future financing, allows employees to track their equity incentives, and streamlines investor due diligence.