Tome

Venture deals, simplified. Rhymes with “home.”

[Tome @use_tome]

And Tome is here to help. Learn about these terms and more on Tome's Venturepedia: https://t.co/6YB7b7oUrS 📚

[Nicole DeTommaso 🪄 @nic_detommaso]

Whether you’re a VC or founder, understanding Term Sheet terminology is CRITICAL.

Here are terms to know:
- Pre-money valn
- Option pool
- Liquidation pref
- Dividends
- Conversion
- Voting, info & participation rights
- Anti-dilution provisions
- Drag-along
- Board makeup

[Tome @use_tome]

original tweet credit: @danhightower

[Tome @use_tome]

Tome helps you avoid the 'weaksauce' by making sure you always know whether your SAFE is modified.

[Nitya Singh @Nityasingh20]

Came across @use_tome this morning and it’s a freaking game changer.

[Tome @use_tome]

Fintech founders, this one's for you 👇

[Sheel Mohnot @pitdesi]

We're launching an accelerator @btv_vc!

Fintech founders have unique needs; we're building the best accelerator to serve them. Our first cohort starts in SF on Aug 1.

Check us out at https://t.co/boicka5BiW - happy to answer any questions, & please send founders our way!

[Steph Mui @stephmui]

New interview with @nadsdugal 🔥

Learned a lot from her about what founders should look out for in term sheets in this fundraising environment (from her background as a venture lawyer + now vc-backed founder)

read more about her and @use_tome here: https://t.co/k6wFjCrYhe

[Tome @use_tome]

5/ Today on the Tome blog, learn what protective clauses you can add to your convertible notes to avoid your equity being in limbo ➡️ https://t.co/dbVVVsKtdp

[Tome @use_tome]

4/ The Toptal case highlights:
🎯the risks of investing on convertible notes;
🎯the importance of drafting protective clauses in your convertible notes; and
🎯how the unwritten rules Silicon Valley only work when everybody agrees to them

[Tome @use_tome]

3/ Now valued at more than $1 billion, Toptal is still 100% owned by its CEO, Taso Du Val, while early investors like Andreessen Horowitz are waiting for their investments to convert into equity.

[Tome @use_tome]

Not every convertible note automatically converts into equity upon the maturity date... And if yours doesn't, you're equity could be in limbo ...

[Tome @use_tome]

2/ In 2012, Toptal raised $1.4 million in convertible notes, with valuation caps of $10-11 million. But they never raised additional capital, leaving the notes outstanding and investors with no equity.

[Tome @use_tome]

@jburkejburke @ColinGardiner Yes, we do this 🙋🏽‍♀️🙋and your first 3 deals are free.

[Jason Burke @jburkejburke]

@ColinGardiner The team at @use_tome has built product for this

[Tome @use_tome]

@jburkejburke @jefielding and the best part is, we’re free for your first 3 deals! Upload your SAFE to https://t.co/Ro5AehHy5v and confirm if it’s truly standard 😉

[Jason Burke @jburkejburke]

@jefielding The team at @use_tome has built product to address the fact that it’s not always as simple as “standard YC safe”

[Tome @use_tome]

@ToddLC @jefielding In our experience, people love to take this language out and modify away 🤗

[Tome @use_tome]

Great post, thanks for sharing! Also, make sure after you issue your founder stock that you file your 83(b) election within 30 days. Most things lawyers can fix, but there are few ways around a missed 83(b) filing or not issuing stock early to founders (and all options are expensive)🚀

[Tome @use_tome]

Our Founding Attorney, Ariana Shaffer, spoke to emerging fund mangers and angel investors about some of the most important VC terms and why they matter for investors 👇

[VC Unlocked @vcunlocked]

Ariana Shaffer, Founding Attorney at @use_tome, dives into four key legal terms and why they are important for investors to understand.
• Valuation
• Option Pool
• Liquidation Preference
• Pro Rata Rights

https://t.co/YrBbQjaRVo

[Tome @use_tome]

@tmrohan 1000%. If only more lawyers subscribed to this belief 🙃

[Tome @use_tome]

@Samirkaji Agreed, markets are cyclical and down rounds are just a part of that cycle. As you've pointed out even great companies (e.g., Meta) have down rounds and while they can be disappointed to founders/employees, it doesn't mean the company is doomed.