Jul 132011
 
Series AA Financing Documents for NC Corporations

The Y Combinator, an incubator in Silicon Valley, publishes a set of documents for use in the first financing round of early-stage companies.  The documents provide a fairly simple and well-understood set of terms for a financing, centering on a “non-participating” liquidation preference — if the company is sold or liquidated, the investors have to choose between getting their money back (or at least as much of it back as is left) or sharing with [...]