Legal docs don’t have to be a source of stress when you’re trying to set up a business. There’s plenty of other things to worry about, but unfortunately, you can’t afford to ignore it.
VC Cafe summarized some of the better ‘open source’ legal docs out there – it’s certainly not a replacement for a lawyer – but it will help you get a leg up to see the documents and understand them before you actually sign the dotted line. I will quote TechStars in this friendly warning: “Please feel free to use these documents, but please do so responsibly only after retaining your own legal counsel. Don’t use these documents blindly”
Taylor Wessing – offers a suite of seed investment documents which are available on an open-source basis. These documents include term sheets, investment documents and explanatory notes. We hope that these documents will assist in highlighting key issues for entrepreneurs and generally in streamlining the seed investment process. Link: http://www.taylorwessing.com/twtechfocus/documents.php
TechStars – the Denver/NY based incubator in collaboration with Cooley, LLP, offers an equity financing structure and a debt one, drawing on its experience funding hundreds of startups. All docs are here: http://www.techstars.com/docs/
Ycombinator – at least one YC founder that I know who graduated the program, used the exact same documents for his new startup, so there must be some value here. Prepared by Wilson Sonsini Goodrich & Rosati and are particularly good for raising angel rounds http://ycombinator.com/seriesaa.html