There are two documents available: the General version and the Angel investment version variant which should be practical both for entrepreneurs to get acquainted with typically used standard terms, and for investors and other players in the ecosystem to utilise for fast, fair, transparent and affordable funding rounds. The terms and documents in both versions have been validated by Europe’s most active seed investors and include all major commonly used terms found in a term sheet. While the documents provide many of the terms that are typically found within financing rounds, the eventual users of these documents ultimately decide which terms to include or not include. The origin of the initiative was inspired by the Series Seed docs of the USA.
The documents are meant to serve a common goal for the community: making seed funding easier to access, better to understand, and fair for all parties. We are looking forward to them being used, adapted, and spread. Likewise, please keep us up to date on what you think about them, when you use them and how they helped you take your companies forward.
Types and Jurisdictions
The first document is the General Seedsummit termsheet, typical for institutional investors. The second is the Angel Seedsummit version, typically used for smaller rounds, for Angels, and within the UK, for those seeking S/EIS tax relief. Both of these are written for use within England & Wales, but they can be the basis for modification for use in your location.
Thanks to the help of local partners, we have already done this for a number of countries, translating the termsheets into other languages and legal structures including Germany, France, Ireland, Croatia, Poland, Hong Kong and more to come.
Usage Notes and Previous Versions
[Items between brackets within the documents are optional and are there to provide transparency on available options]
The UK termsheets are version 2 of the original drafts. For version 1 and more information about the changes from v1 to v2, click here.
As with all the Seedsummit documents, the Termsheets are meant to help the startup community grow by their use, adaptation, sharing and, with your comments and experiences, improvement. So please be in touch with your comments on the documents and how you have found them useful.
The original documents were prepared by Tina Baker of JAGShaw Baker and Brown Rudnick LLP.
JAGShaw Baker is a specialist corporate law firm serving entrepreneurs, companies and investors in high-growth industries.
Brown Rudnick LLP is an international law firm with offices in the United States and Europe working with emerging technology businesses and investors.
Find out more about Termsheet Change Log – v1 versus v2