Standard Term Sheets for Early Stage Startup Investment in Canada.
NACO is developing standard document templates that will be broadly applicable to its members as a starting point for negotiating investment terms with startups. The resulting templates should act as a reliable guideline for both investors and founders and cover 80% of the content (terms) required to negotiate investments in 80% of member early-stage investment scenarios.
Be in the know for the launch event and other details
Common Docs – Consultation Meetings – Please Join Us:
Monday, February 27th, 1:00 – 5:00pm
and (same content on both dates)
Tuesday, February 28th, 9:00am – 12:30pm
BDC Montreal Head Office
5 Place Ville Marie, Suite 300
Thursday, March 2nd, 9:00am – 2:00pm
1505 Barrington Street, 7thfloor
Monday, March 13th, 9:00am – 2:00pm
RBC – Banker’s Hall
335 – 8th Ave SW 6th floor
Please RSVP to email@example.com
- Align the interests of the founder and funder;
- Position the company for future investment and growth;
- Protect the rights of the investor;
- Reduce the friction inherent in negotiating deal terms
The set of term sheets will roughly cover common equity, preferred equity, and convertible debt deals. We are also looking to work on standardized Canadian versions of convertible equity
We are being joined by sponsors and participants helping to define these terms with a background in legal, finance, investment, and entrepreneurship.
The initial project to produce these Common Docs will run through the end of March 2017. The documents and supporting educational content will be posted here on the NACO site, and available under an open license for use and re-use by the entire Canadian early-stage startup community.
If you are interested in becoming part of the NACO Common Docs project as a sponsor or participant, get in touch with us with the subject “NACO Common Docs”. To follow closely the latest news, projects and resources for the early-stage ecosystem, signup for our newsletter.