Seed money, or seed capital, is an essential source of funding for new businesses, as statistics show one quarter of startups fail due to a lack of money. Before deciding to accept seed money, consider the terms of the investment – do you want to give up equity?
Do you want to borrow money at a low interest rate?
Do you want the right to convert the loan to shares once your round is priced (i.e., valued by a Series A investor)?
In addition, what equity arrangements have you made with your co-founders?
Equity distribution is the number one source of co-founder disputes – one that is avoidable when co-founder agreements are in place prior to seeking seed capital.
Ultimate Business Analysis
Sharing your business plan with experts can help accelerate your vision and getting that necessary honest feedback (and possibility, funding) essential to bringing your vision to life. We can help provide the legal and strategic structure to bring your brainchild to life.
Advise on business, marketing plans and vet your potential partners
- Guide you through the process of setting up the most suitable legal entity – partnership, limited liability company (LLC), S or C corporation
- Prepare and negotiate founder and equity agreements
- Draft Promissory note and SAFE (simple agreements for future equity) agreements
- Maintain, recover and broker domain names
- Prepare website terms of service and counsel on ADA and Digital Millennium Copyright Act compliance
- Devise intellectual property strategies (patents, trademarks, copyrights and trade secrets)
- Review business plans and marketing pitches
- Draft standard non-disclosure agreements
- Create templates and best practices for independent contractor relationships and employment policies