Introduction
Techstars provides a comprehensive set of model legal documents designed specifically for angel or seed financing rounds in the 2M range. These documents represent a “light” preferred equity financing structure with simple, balanced terms that lean toward entrepreneurs.Techstars model documents are designed with a great deal of trust in entrepreneurs and provide a streamlined approach to seed-stage equity financing.
Document Philosophy
The Techstars model documents embody several key principles:Entrepreneur-Friendly
Terms are generally balanced but lean toward protecting founders and entrepreneurs, reflecting the trust-based nature of early-stage investing.
Simplified Structure
Documents use straightforward language and simplified terms compared to traditional venture capital agreements, making them more accessible for first-time founders.
Practical Range
Designed for seed rounds between 2,000,000, covering the typical angel and early seed investment sizes.
Available Document Sets
Techstars provides two primary document sets for different financing scenarios:Series AA Equity Financing
Series AA Equity Financing
The Series AA document set is designed for straightforward preferred stock financing rounds. This package includes:
- Restated Articles of Incorporation - Updated corporate charter reflecting the new Series AA preferred stock
- Bylaws - Corporate governance rules and procedures
- Subscription Agreement - The main purchase agreement for investors
- Board Consent - Board approval for the financing round
Bridge Financing (Convertible Notes)
Bridge Financing (Convertible Notes)
The bridge financing documents provide an alternative structure using convertible notes, ideal for:
- Quick bridge rounds between equity financings
- Situations where valuation negotiations need to be deferred
- Maintaining flexibility for future pricing rounds
- Bridge Term Sheet - Outlines the key terms of the convertible note
- Convertible Promissory Note Purchase Agreement - Purchase contract for the notes
- Convertible Promissory Note - The actual debt instrument that converts to equity
When to Use Techstars Documents
Techstars model documents are particularly well-suited for:- First-time founders raising their initial seed round
- Accelerator graduates moving into external fundraising
- Angel-led rounds with multiple individual investors
- Situations where speed and simplicity are priorities
- Companies seeking balanced, founder-friendly terms
While these documents provide an excellent starting point, always have legal counsel review any financing documents before execution. Every financing situation has unique considerations.
Comparison with Other Document Sets
The startup ecosystem offers several standardized document sets. Here’s how Techstars compares:| Document Set | Complexity | Investor Lean | Use Case |
|---|---|---|---|
| Techstars | Low | Entrepreneur-friendly | Seed rounds (2M) |
| Series Seed | Low-Medium | Balanced | Seed rounds (various sizes) |
| Y Combinator AA | Low | Entrepreneur-friendly | Angel/seed rounds |
| NVCA | High | Investor-friendly | Professional VC rounds |
Resources and Downloads
Official Techstars Documents
Access the complete set of Techstars model documents from the official Techstars blog.
Series AA Documents
Detailed breakdown of the Series AA preferred stock financing documents.
View Series AA documentation →
Additional Considerations
Customization and Modifications
Customization and Modifications
While Techstars documents provide a strong foundation, most financing rounds require some level of customization:
- State-specific incorporation requirements (documents are generally Delaware-focused)
- Investor-specific terms and conditions
- Industry-specific provisions
- Cap table and existing shareholder considerations
Due Diligence and Closing
Due Diligence and Closing
Using standardized documents accelerates but doesn’t eliminate the due diligence process:
- Investors will still review your corporate structure and cap table
- Financial records and business metrics will be examined
- Background checks and reference calls are standard
- Closing conditions must still be satisfied
Getting Started
To use Techstars model documents for your financing:- Determine your structure - Decide between equity (Series AA) or convertible notes (bridge)
- Review the documents - Familiarize yourself with the complete document set
- Engage legal counsel - Have an experienced startup attorney guide the process
- Customize as needed - Adapt templates to your specific situation
- Negotiate key terms - Work with investors on valuation, amount, and other key provisions
- Execute and close - Sign documents and complete the financing
The Techstars model documents are freely available and can be used by any company, not just Techstars portfolio companies.