If an early stage startup is able to reach agreement with investors on the current valuation of the company, they will often then move forward with Series Seed Preferred Stock (sometimes called “Series AA”) round rather than a SAFE or Convertible Note. Series Seed round lawyers are familiar with the core issues to be negotiated in a Series Seed round.
Elements of a Series Seed Preferred Round
This type of round, if there are outstanding SAFES or Convertible Notes, enable the founders to convert those instruments into equity, simplifying the Company’s Cap Table. Our team will guide you in negotiating the valuation and the level of investor rights and preferences and protective provisions that are reasonable, usual and customary for a Series Seed round rather than a Series a round.
Fixed Fee Series Seed Preferred Round Package
NEXT attorneys understand the complexities that may come with a Series Seed round and have thoughtfully developed our fixed fee Series Seed Preferred package, which includes:
- Strategic guidance on the financing process
- A review of prior corporate documents for existing investor rights
- Preparation and negotiation of the Term Sheet
- Preparation and negotiation of the Amended and Restated Certificate of Incorporation and Stock Investment Agreement
- Preparation of Corporate Resolutions, Officer’s Certificates and Secretary’s Certificate
- Guidance and preparation in conjunction with client of the Disclosure Schedules
- Preparation of Accredited Investor Questionnaire
- Management of the Closing
- Federal Level – SEC – Securities Filings
- State Level Securities Filings