Standard Series A Term Sheet (YC)

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About this template

This is a standard, easy and fast term sheet, drafted by YC and customisable live on the Genie AI platform. Series A documents set the precedent for the terms of future rounds. For this reason you want to keep things simple early on, as complexity can creep in with each round. If you begin with complex terms, you will invariably make future rounds more complicated which might result in some investors dropping out.

Y Combinator have seen hundreds of term sheets and they therefore know what 'good' looks like. Founders, especially if it is their first company, do not. YC created this term sheet as an attempt to standardise terms and use plain english rather than legalese to alleviate this common disadvantage faced by founders.

The clauses and legal terms around company structure, board composition and operational control are particularly important to keep balanced and standardised.

Investors might manifest their desire to reduce downside risk or boost upside potential through the use of dirty terms, pushing you to sell against your wishes or controlling how much risk you take on in pursuit of a new potential strategy or pivot.

This template is intended to be customised with your own requirements, so you can cover the specifics of your standard needs. It will also allow you to fully customise it to your own specifications as you deem fit.

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This template is freely and publicly available by joining the Genie Community.

Templates properties

Publisher

YCombinator

Source file

Standard Series A Term Sheet (YC).docx

Jurisdiction

United States

Cost

Free to use

Contract party
Relevant sectors
Type of legal document

πŸ“ƒ Investment Agreement Term Sheet

Why use a
πŸ“ƒ Investment Agreement Term Sheet
?

This term sheets sets out the Heads of Terms that have been agreed between Founder and investor and will form the basis on which the Investment Agreement is drafted.

use this template for free
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How it works
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This is a standard, easy and fast term sheet, drafted by YC and customisable live on the Genie AI platform. Series A documents set the precedent for the terms of future rounds. For this reason you want to keep things simple early on, as complexity can creep in with each round. If you begin with complex terms, you will invariably make future rounds more complicated which might result in some investors dropping out.

Y Combinator have seen hundreds of term sheets and they therefore know what 'good' looks like. Founders, especially if it is their first company, do not. YC created this term sheet as an attempt to standardise terms and use plain english rather than legalese to alleviate this common disadvantage faced by founders.

The clauses and legal terms around company structure, board composition and operational control are particularly important to keep balanced and standardised.

Investors might manifest their desire to reduce downside risk or boost upside potential through the use of dirty terms, pushing you to sell against your wishes or controlling how much risk you take on in pursuit of a new potential strategy or pivot.

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Contract template sketch
0
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This postmoney SAFE (Simple Agreement for Future Equity) can be used by startups as a tool for early-stage fundraising. YC's SAFE allows for high resolution fundraising and can reduced legal fees for both startups and investors by reducing the amount of time spent on the negotiation of terms. This is an uncapped SAFE with a discount rate.

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