The step-by-step process from signed term sheet to wire hitting your account, with the timelines and documents you need at each stage.
The gap between a signed term sheet and a wire is typically 4–8 weeks. Founders who lose momentum in this window sometimes see terms renegotiated or deals fall apart. This checklist keeps the process on track.
Sign the term sheet. Confirm exclusivity/no-shop period (typically 30–45 days). Introduce your lead to your legal counsel. Confirm the timeline and target closing date. Send a Series A working group list.
Data room opened to lead. Diligence Q&A begins — expect 30–60 questions. Reference calls with customers and prior investors. Technical/security review if applicable. Background checks on founders (standard, not concerning).
Lead's counsel drafts the amended and restated certificate of incorporation, stock purchase agreement, investor rights agreement, right of first refusal and co-sale, and voting agreement. Your counsel reviews and negotiates.
Focus on protective provisions, information rights, board composition, and pro-rata rights. Most terms are standard; a good lawyer knows the market and won't fight cosmetic points.
Address any remaining diligence items. Update cap table to reflect closing. Confirm option pool refresh. Prepare board and stockholder consents. Send signature packages.
All documents signed. Wire instructions confirmed. Wire hits (usually 1–3 business days after signing). Press release drafted (release when appropriate). Update cap table platform. Set up board meeting cadence.
First board meeting within 4–6 weeks. Send first monthly update within 30 days. File 83(b) elections for any new option grants. Confirm 409A valuation is fresh (get a new one if required).
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