Seed and Series A Startup Financing

We advise and execute various fundraising legal documents including convertible term sheet, simple agreement for equity agreement, promissory note, debt and equity issuance and keep it simple security agreement. 

In a Series A fundraising the company usually sells convertible preferred stock to investors in exchange for capital. The preferred stock provides investors with a number of rights and by far the most important is the right to convert preferred stock for common stock at some point down the line. Other rights can include veto powers, board seats and liquidity preference.

We advise and execute pertinent legal documents for Series A funding including term sheet, amended and restated articles of incorporations, preferred stock investment agreement, investor suitability questionnaire, investors’ rights agreement, shareholder & board written consents.  

A term sheet is a non-binding agreement that lays out the terms of the agreement the parties agreed on. An amended and restated article of incorporation is likely required if investors acquire preferred stock in the company.

The preferred stock investment agreement, or stock purchase agreement is a binding agreement and formalizes the relationship between the investor and startup by setting forth very specific terms related to the deal’s purchase price, representations and warranties, indemnification, and closing conditions.

Among other requirements, the completion of an investor suitability questionnaire shows that the investor is in fact accredited, which allows the company to file a private placement exemption with the SEC. The company’s in-house or outside counsel should prepare the shareholder and board written resolutions. 

For startup companies, our startup business lawyers in Miami, Florida USA counsel on convertible notes, debt and equity financings, negotiate favorable term sheets and other pertinent documents in connection with seed and Series A financing. Contact us or schedule a consultation.