Standardized forms (generic term sheets & subscription agreements) based on industry best practices would be used to maintain transparency and reduce time and expense for all parties. MORE

If you are raising friends and family money, then you will most likely use a private placement memo format along with a subscription agreement as your initial contact. Depending on who you are raising money from, your initial contact with the investor(s) will take different forms. This is so because at the friends and family level, you are proposing valuation and deal terms, not the investors, and all of this information is contained in the private placement memo. MORE

A private placement share agreement can give your company the capital it needs to take things to the next level. But there's a third way you can raise capital for your growing business that's easier and more effective than both of those methods: a private placement agreement. MORE

Presumably, each stockholder will be required to execute a subscription agreement and/or stockholders’ agreement to address key issues such as transfer restrictions, rights of first refusal, drag-along rights, etc. Last week, the U.S. MORE

In the early days of one consulting firm, the founders signed a contract with a large software company that gave the customer unlimited consulting under the guise of a $40,000 subscription agreement. Rein in customer expectations, or they could sink your business. MORE

These changes to the net worth determination are effective immediately, so issuers, investors and others that participate in private placement transactions should make sure that their disclosure documents, accredited investor questionnaires and subscription agreements are consistent with this new standard. By Lewis J. Geffen and Daniel I. DeWolf of Mintz Levin Cohn Ferris Glovsky & Popeo LLP. Introduction. MORE

If you’ve raised capital before you know that the term sheet is the least of your worries as it’s just a precursor to a much bigger set of definitive agreements including a Shareholders Agreement and Subscription Agreement (or Investor Rights and Purchase Agreements in the US). I recently saw a $100K seed investment that required a 47 page subscription agreement and similarly large Shareholders agreement. MORE

Lawyer time required (including vesting agreements for founders): 3 to 6 hours. And each award to a given employee requires a separate grant agreement laying out the terms of the grant. You need a lawyer to create the plan and grant agreements (on the grant agreements, once you have the form, you can probably use it for other future grants of the same type). MORE