I will draft a startup cap table protection agreement to prevent dilution
Bulletproof Startup Contracts Equity Structuring Specialist
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As a founder, your most valuable asset is your place on the Cap Table. However, when you raise capital from Angel Investors or VCs, you risk severe dilution and loss of control.
I will draft a highly specialized Startup Cap Table Protection Agreement. This document contains sophisticated clauses used by top-tier founders to protect their equity percentages and control as the company issues new shares during funding rounds.
Crucial Protections Included:
- Right of First Refusal (ROFR): Gives existing founders the right to buy shares before they are sold to outsiders.
- Preemptive Rights: Gives you the right to purchase new shares in future funding rounds to maintain your percentage.
- Anti-Dilution Provisions: Protects the value of your shares in the event of a "down round."
- Drag-Along & Tag-Along Rights: Protects minority and majority shareholders during an acquisition.
Don't wait until investors hand you a term sheet to think about protection. Secure your cap table now. Choose the Premium package for ultimate defense and place your order. (981 characters)
Campo del derecho:
Derechos civiles
País de destino:
Estados Unidos
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FAQ
What does "anti-dilution" mean?
It is a protective clause that prevents an investor or founder's ownership percentage from being unfairly reduced when new shares are issued later at a lower price.
What are Preemptive Rights?
If the company issues new shares to raise money, preemptive rights allow current founders to buy a portion of those new shares to maintain their current ownership percentage.
What are Drag-Along rights?
If a majority shareholder wants to sell the company, a drag-along clause forces the minority shareholders to join the sale, ensuring the buyer gets 100% of the company.
When should I get this agreement?
You should have these protections in place before you take on outside capital or bring on heavy-hitting advisors.
Why is this gig more expensive than the others?
Cap table protection involves highly complex corporate finance concepts. Drafting these requires specialized knowledge to ensure they don't break future VC funding.
