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 seriesseed.com, 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 seriesseed.com 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.
In addition to adding the transferability of shares by investors, we have also added a Co-Sale right for the investors to the seriesseed.com 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.
