Startups: Y Combinator Financing Documents
September 4, 2008 · Print This Article
We have highlighted a few places for startups to get their hands on some good documents to help them out. We have talked about Docstoc and the new Google Templates. These are great resources for the new up and coming startup to use instead of forking out money that could be better spent on developement costs.
I now want to point your attention to some new documents that have just been put up for use by Y Combinator, the venture firm in Boston that specializes in helping early stage startups and incubates them to move them on to larger funding opportunities.
Now they have gone and done a really cool thing
Y Combinator and Wilson Sonsini Goodrich & Rosati are happy to announce the Series AA Equity Financing Documents. Their goal is to make angel funding rounds for startups easier for both sides.
These documents were originally created for YC-funded startups to use when raising angel rounds. They seem to have worked well in trial runs so far, so we’re open-sourcing them.
While they may not be suitable for all situations, the goal was to make the terms fairly neutral. So while we would of course advise both parties using these documents to have their lawyers look at them, they provide a starting point that we hope can be used in many situations without too many modifications.
Needless to say, neither YC nor WSGR assumes any responsibility for any consequence of using these documents.
They’re also available on Scribd.
This is a really awesome gesture in order to help out other startups out there and again allowing them to be able to focus a little more on their core competencies and not the paperwork, all the while saving them a littel cash by not having to hire lawyers. Some estimates I have heard for preparation of these documents is around the $20-$25k range. Now you can put that money where you need it most and rest easy knowing these documents are out there to try to help.
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