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Wilson Sonsini Goodrich & Rosati is the premier legal advisor to technology, life sciences, and other growth enterprises worldwide. We represent companies at every stage of development, from entrepreneurial start-ups to multibillion-dollar global corporations, as well as the venture firms, private equity firms, and investment banks that finance and advise them. The firm's broad range of services and practice areas are focused on addressing the principal challenges faced by the management, boards of directors, shareholders, and in-house counsel of our clients.

.CO is the web address where the world’s innovators, entrepreneurs, businesses and brands come together to build and grow their ideas and organizations online.

CodigoDelSur is a designer and developer of digital products. Having worked with Founder Institute startups in the past, they come as a highly recommended Founder Institute referral. They are composed of highly skilled software, web, and mobile app developers, who are excited to incorporate the latest technologies into the applications they develop.

Xero is everything you need to run your business financials. Work with a beautiful small business accounting software complete with accounting, invoicing, payroll, inventory and more. Xero seamlessly integrates with over 500+ business apps, including CRM, point-of-sale, time tracking, ecommerce, just to name a few. Join the 700,000+ businesses using Xero in more than 180 countries.

Vet-Tech is America's Veteran-led Startup Accelerator headquartered in Silicon Valley. With over 100 military veteran startups in our community, Vet-Tech's top 20 portfolio companies have raised over $10 Million in funding and have been accepted into world class programs like Tech Stars and Founder Institute.

Startup Weekend


Through the Startup Weekend Fellowship, members of the Startup Weekend Community who want to start a technology company can apply to the Silicon Valley Founder Institute chapter for free, and the best overall applicant will be invited to participate in the Founder Institute's step-by-step startup launch program for free as well.

Eligibility: In order to be eligible for the Startup Weekend Fellowship for the upcoming semester, you must complete your application and admissions test by Sunday, December 11th, 2016, using this link.

Grant: The recipient of the Startup Weekend Fellowship will be awarded within 5 days after the deadline.

Click here to apply for the Startup Weekend Fellowship.

New Plain Preferred Term Sheet

Posted by Adeo Ressi on 2009-08-24

TheFunded and the Founder Institute have just released a new "Plain Preferred" term sheet with the support of the blogosphere, including top-rated venture capitalist, Fred Wilson.

Chris Dixon posted about an ideal term sheet for first round funding, which started an blogosphere discussion about terms. Fred Wilson came out in support of this simplified term sheet, so TheFunded Founder Institute has engaged WSGR to author the exact template agreed on by various entrepreneurs and investors for anyone to use:

Plain Preferred Term Sheet:

The new "Plain Preferred" term sheet compliments the founder-friendly incorporation documents already developed by the Institute, which are being used by approximately 50 start-ups both within and outside of the Institute. Terms section submission form lists nearly 100 different terms that are in common use by venture capitalists. Fred Wilson, Chris Dixon, and others in the debate agree to a dramatically simplified term sheet with some significant changes against the norm:

  • The elimination of participation, which has become a common request since the Internet bubble burst. "Participation" means that investors "double dip" by getting both their liquidation preference and their equity allocation.
  • A 1x liquidation preference, versus a 1x to 3x range in recent deals reported on A "1x liquidation preference" without participation means that investors choose to either (a) get their money back or (b) convert to equity and get the equity value only. This is a downside protection term.
  • Single trigger vesting, which allows founders to vest all of their equity and make money in an exit. Many investors require "double trigger vesting," which means that the company needs to sell and the founder needs to be terminated for his or her shares to vest.

New and complex terms, such as "Super Pro Rata" investment rights, are removed from the Plain Preferred template, since they add marginal value to investors while adding significant complexity to deals. Legal costs are rising while venture returns are shrinking. The average Series A investment costs $50,000 in legal fees to close. Meanwhile, the founders themselves are being squeezed with more and more terms that lock up exit value, creating a misalignment of incentives.

The Plain Preferred term sheet aligns the investor and the entrepreneur incentives. This is a rare example of a term sheet where the percentage ownership of participants will correlate closely to returns generated in an exit.


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New Plain Preferred Term Sheet

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