Introducing “TATS”
Tradable Automated Term Sheet.

The TATS (tradable automated term sheet) is a new angel investment term sheet Draper Associates and Brubaker Law brought to LawTrades to make standard for our customers. This will allow startups to be eventually tradable if not public and automated so people can easily manage their private shares. TATS is an addendum to the Series Seed investor term sheet for startups.

During its development TATS was reviewed by top Silicon Valley investors and attorneys. We believe it is a legal step in the right direction for both investors and founders.

As with everything else, we plan on iterating TATS over time. If you have any comments or suggestions on how we can improve or be on a list of investors who has agreed to accept these docs, let us know by sending an email to or @lawtrades on Twitter.

Draper Associates + LawTrades


The Tradable, Automated Term Sheet (“TATS”) (and corresponding investment documents) is designed to facilitate trading of shares of non-public companies. We have taken the standard set of Series Seed financing documents, available at, and modified them to allow for, in certain circumstances, the transfer (sale) of private company stock by those early stage investors. The idea here is to incentivize investors by allowing them the option of earlier liquidity, hopefully allowing more startups to have access to funding.

In addition to adding the transferability of shares by investors, we have also added a Co-Sale right for the investors to the documents. This allows investors a right to sell, in proportion to their ownership, alongside any proposed sale of shares by Founders. This also gives investors an incentive by providing them a possible option at earlier liquidity.

The TATS may not be applicable or advisable in every situation. Please contact an attorney before using these forms for any investment. LawTrades does not assume any responsibility for any consequence of using the TATS, including failure to comply with any applicable federal or state securities law.

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