Whereas, the traditional venture capital investment package is five lengthy documents, the Series Seed approach is condensed into three essential documents. They are the (i) term sheet, (ii) stock investment agreement, and (iii) certificate of incorporation. The three documents will be identical to the documentations published on the Series Seed website. Where there are modifications in the term sheet, the two other documents will be modified to reconcile with a term sheet. One of the major benefits of using the Series Seed set of documents is that the term sheet sets forth a concise framework for negotiations. It streamlines the process, and thereby reduces the time and expense required for the transaction.
In the Series Seed term sheet, the documentation required is as follows:
Documents will be identical to the Series Seed Preferred Stock documents published at SeriesSeed.com, except for the modifications set forth in this Term Sheet.
Thus, the definitive set of documents that the investors and founders will approve as a part of the financing will be the latest version on SeriesSeed.com. However, it’s worth noting that almost every deal will have some nuance, so counsel for both the startup and the investor will likely edit these documents. But at least a shared starting point should make that process much more efficient.