June 2, 2017
NACO Term Sheets
Below you will find the 4 term sheets produced for the NACO Common Docs project
A Common Share deal aligns founders and funders with the same class of shares, and fully negotiates all rights and terms in the Shareholders Agreement. It may be used at any stage of deal before a Series A, as long as valuation can be agreed on.
Series Seed Preferred Shares
This Preferred Share term sheet is sometimes also called “Preferred Light”. It is commonly used for a later and larger Seed round.
Convertible Debt is commonly used as part of the first financing of a company when valuation can’t be agreed on, or as a bridge ahead of a larger seed or Series A round.
The Canadian Simple Agreement for Future Equity (SAFE) is modelled after the Y Combinator SAFE. We have included a cap and a discount in this default template, and have also added a maturity date, as we believe that is more appropriate for the Canadian market.
Visit the NACO website to access the 4 term sheets produced for the NACO Common Docs project.