Startup term sheet explained by a lawyer...for free! (Part 2, the Charter) | Startup funding 101

🎥 Watch Part 1, the Offering Terms:    • Startup term sheet explained by a law...  

🎥 Watch Part 3, the Investor Agreements:    • Startup term sheet explained by a law...  

🎥 Watch Part 4, the Board of Directors:    • Startup term sheet explained by a law...  

Startup funding explained: If you're raising a priced round of funding (like a Series A), you'll have to evaluate an investor term sheet. But how does a term sheet work? And what does all this complex legal language really mean?

We asked a real startup attorney - Mike LaPlante from Perkins Coie - to explain the basics of a Series A term sheet. In Part 2, Mike breaks down the second section of a Series A term sheet, the Charter. In the next lesson, he'll dive even deeper, and break down the Stock Purchase Agreement and Investor Rights Agreement, and in part 4 he'll discuss one of the most important elements of any term sheet, the Board Structure when you form your board of directors.

✅ See the pitch deck Carta used to raise our Series A: https://crt.cx/2TCHW4J

✅ How to raise a funding round: https://carta.com/blog/how-to-raise-a...

✅ Watch & learn: How do SAFEs and convertible notes work?    • Startup Financing 101: How SAFEs and ...  

✅ Watch & learn: What's a valuation cap?    • Startup financing 101: What's a valua...  

✅ Automate your cap table with Carta: https://www.carta.com

NO FEAR EQUITY is a presentation of Carta, the #1 equity management platform for startups and equity-funded companies. We have plenty of free resources to help startup founders plan their fundraise, manage their cap table, and prepare to issue equity to investors and employees. Check out some of our resources here:

🔷 Carta's Series A pitch deck: https://carta.com/blog/carta-series-a/
🔷 Carta's Series D pitch deck: https://carta.com/blog/carta-series-d...
🔷 Our free cap table template: https://carta.com/blog/cap-table-temp...
🔷 Our free board deck template: https://carta.com/blog/board-deck-tem...
🔷 What to look for in a 409A report: https://carta.com/blog/understanding-...

DISCLOSURE: This communication contains general information only and eShares, Inc. dba Carta, Inc. (“Carta”) is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This communication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein.