What financing documents are companies preferring for initial priced rounds?
The NVCA model documents provide well-established, comprehensive investor protections and remain the standard for many financings. The growing adoption of SeriesSeed.com forms reflects a shift toward streamlined documentation that supports faster closings and lower upfront costs, while preserving flexibility to address additional terms and protections in later financings. Notable takeaways:
• SeriesSeed.com frequency more than doubled in the last five years
• NVCA remains the expectation, particularly in later-stage financings
Questions to consider
• Founders: Are you prioritizing faster closings or long-term deal structure?
• Investors: Do lighter templates meet your expectations for early-stage protections?
• Counsel: Do you default to NVCA for consistency, or adjust based on deal dynamics?