No founder starts a company dreaming about legal paperwork, yet somehow, by Series A, your inbox looks like a law firm exploded. The jargon can get ridiculous: term sheets, subscription agreements, shareholders’ agreements (SHA)… it’s enough to make anyone question their life choices. But these documents aren’t there to make your life miserable. They exist to protect everyone’s interests, especially yours, if you understand what’s inside them. Here’s what to look for before you hand over a signature.

The Truth

• Never assume your lawyer is reading your mind. Ask questions until it makes sense.
• “Market standard” just means “someone else signed it before.”
• Investors respect founders who know their paperwork. It shows you’re serious, not suspicious.
• The best contracts are the ones you never need to reopen because everyone understood them from day one.

What’s Worth Negotiating

Term Sheet

Subscription agreement

Shareholders’ agreement (SHA)

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All information on this page is solely ATUM’s opinion and does not constitute legal or accounting advice. For more info, go to: www.atumventures.com

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