Mon, 24 February 2020
The terms sheet sets out terms such as Pari passu, Last Money in Rules, Exclusivity and confidentiality, and Conditions of Financing
Pari passu is a Latin phrase meaning equal footing and without preference. This clause basically states that if the startup issues any new classes of stock then it shall have equal rights with prior classes. This applies to liquidation preferences, voting rights, and so on.
Conditions of Financing terms require founders to formalize items such as employment and non-compete agreements with the startup and legal assignment of all inventions and other intellectual property to the startup entity.
Let’s go startup something today!
Direct download: Startup_Funding_Espresso_--_Pari_Passu.mp3
Category: -- posted at: 10:36pm CST