Spring Planting Season: Document Pre-Seed and Seed-Stage Investments

After receiving initial investments from its founder(s) and the founder’s family and friends, today’s early stage start-ups generally raise capital from outside investors primarily through equity or convertible debt financing transactions. Depending on the company’s capital needs and level of development, early stage financings may provide, among other benefits, the funding to help a start-up turn its ideas into a minimum viable product or enable it to continue testing and building out a product. There may be single or multiple rounds of pre-seed or seed funding before a start-up raises its Series A funding round. This practice note explores direct pre-seed and seed equity financing transactions for start-up companies and the documentation (including recent trends) that memorialize such transactions.

READ NOW »

Related Content

• Pre-seed and Seed Stage Convertible Note and Note Purchase Agreement Transactions
  Read this practice note that explores early stage convertible debt financing transactions for start-up companies and guides the drafting and negotiating of a note and note purchase agreement.
• Note Purchase Agreement
  Review this form note purchase agreement drafted in connection with the issuance and sale of convertible notes in the seed-stage financing of a start-up company.
• Start-Up Resource Kit
  Consult this collection of resources to guide start-up company organization and operation, including detailed practice notes, forms, and checklists.

Practical Guidance Updates
Featuring the latest updates in Practical Guidance.

• Document alerts allow you to stay current on legal developments that affect your practice.
  Find out how to set up your document alerts.
• The Practical Guidance Journal Spring 2021 Edition | COVID-19 Vaccination: Key Employment Law Issues

Experience results today with practical guidance, legal research, and data-driven insights—all in one place.

Experience Lexis+