Sample term sheet for equity investment

In addition to being simpler and clearer, we intend the safe to remain fair to both investors and founders. During its development the safe was positively reviewed by many of the top startup investors. Unlike a convertible note, sample term sheet for equity investment safe is not a debt instrument.

Debt instruments have maturity dates, are typically subject to certain regulations, create the threat of insolvency, and can include security interests and sometimes subordination agreements, all of which can have unintended negative consequences for startups. Because the money invested in a startup via a safe is not a loan, it will not accrue interest. This is particularly beneficial for startups, but also better embodies the intention of investors, who never meant to be lenders in the first place. As a flexible, one-document security without numerous terms to negotiate, a safe should save startups and investors money in legal fees and reduce the time spent negotiating the terms of the investment. Startups and investors will usually only have to negotiate one item: the valuation cap. Because a safe has no expiration or maturity date, there should be no time or money spent dealing with extending maturity dates, revising interest rates or the like. A safe still allows for high resolution fundraising.

Startups can close with investors as soon as both parties are ready, instead of trying to coordinate a single close with all investors simultaneously. While a safe may not be suitable for all situations, the terms are intended to be fairly neutral. So while we would of course advise both parties using a safe to have their lawyers look at them, we believe a safe provides a starting point that we hope can be used in many situations without too many modifications. Needless to say, YC does not assume any responsibility for any consequence of using a safe or any other document found on our website. In 2015, Y Combinator open sourced its sales template for the benefit of all startups. Special thanks to James Riley at Goodwin Proctor for helping us draft this.

Goodwin Procter do not assume any responsibility for any consequence of using these documents. KMF is a closed-end fund whose investment objective is to provide a high level of total return with an emphasis on making quarterly cash distributions to its stockholders. Access to Private Investments KMF provides access to private investment opportunities not available to retail investors. View the complete Distribution History for KMF.

Distributions of our ordinary income plus net short-term capital gains in excess of net long-term capital losses will be taxable as ordinary income to the extent of our current or accumulated earnings and profits. Sample Form 1099-DIV for each year can be found at www. Ending values as of the dates shown in the table. Performance does not reflect transaction fees or broker commissions. Past performance is no guarantee of future results. This estimate is based on our estimated earnings and profits for fiscal 2018 and our accumulated earnings and profits as of November 30, 2017. This estimate does not include a projection of gains and losses on the sale of securities for the remainder of fiscal 2018.

This material shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of the securities in any jurisdiction in which such offer or sale is not permitted. Past performance is not a guarantee of future results. An investment in the fund could suffer loss. Current performance may be lower or higher than that shown based on market fluctuations from the end of the reported period. 2018 – KA Fund Advisors, LLC – All rights reserved. When someone, whether a creditor or investor, asks you how your company is doing, you’ll want to have the answer ready and documented.

The way to show off the success of your company is a balance sheet. A balance sheet is a documented report of your company’s assets and obligations, as well as the residual ownership claims against your equity at any given point in time. Many people and organizations are interested in the financial affairs of your company, whether you want them to be or not. You of course want to know about the progress of your enterprise and what’s happening to your livelihood.