Intermediate legal
409A Valuation
A 409A is an independent appraisal of a private company's common stock fair market value, required by U.S. tax law before issuing stock options to employees.
#legal
12 results
Glossary
Intermediate fundraising
Convertible Note
A convertible note is short-term startup debt with interest and a maturity date that converts into equity when a future priced round closes.
Intermediate fundraising
Due Diligence
The structured investigation an investor conducts before closing a deal, covering financials, legal, product, team, and market validity.
Intermediate equity
Good Leaver / Bad Leaver
Good leaver and bad leaver clauses define how a departing employee's unvested and vested equity is treated based on why they left.
Intermediate fundraising
Letter of Intent (LOI)
A Letter of Intent is a non-binding document expressing intent to enter an agreement, used in B2B sales and M&A transactions.
Intermediate fundraising
Liquidation Preference
The right of preferred investors to be paid back before common shareholders in a liquidation or sale event, protecting downside.
Intermediate fundraising
SAFE - Simple Agreement for Future Equity
A SAFE lets investors fund startups in exchange for future equity, with no interest rate or maturity date. Created by Y Combinator in 2013.
Intermediate fundraising
Term Sheet
A term sheet is a non-binding document outlining the key terms of a VC investment deal before formal legal agreements are drafted.
Guides
Intermediate fundraising
9 min Prepare Your Data Room
How to build an investor data room that passes due diligence - the exact documents, folder structure, and red flags to fix before investors ask.
Advanced fundraising
18 min How to Read (and Negotiate) a Term Sheet
A founder's guide to every clause in a VC term sheet - valuation, liquidation preference, anti-dilution, board control, and what to actually negotiate.
Articles
Intermediate ai
11 min AI Regulation for Startups
The key AI regulations founders need to know in 2025-2026 - EU AI Act, US rules, GDPR implications, and a practical compliance checklist.
Beginner operations
14 min Startup Legal Basics for Founders
Four legal decisions - incorporation, co-founder equity, IP assignment, and the 83(b) election - can make or break your company. Get them right early.