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Pre-Seed Checklist

A practical checklist to prepare for your first fundraising round.

I. Legal Counsel & Company Formation

  • Engage legal counsel specializing in start-ups
  • Form (or transition to) a Delaware C Corporation
  • Prepare and gather company formation documents
  • ✅ Certificate of Incorporation
  • ✅ Bylaws
  • ✅ Board Consents
  • Prepare paperwork to transfer founder IP to the company
  • Document founder equity stakes and vesting schedules
  • File an 83(b) election with the IRS (if applicable)

II. Capitalization Table & Equity Structure

  • Set up a clean Cap Table (accurate ownership record)
  • Establish a fair equity split among founders
  • Create an Equity Incentive Plan (e.g., option pool) for team/advisors
  • Implement 4-year vesting with a 1-year cliff for all contributors
  • Ensure shares have transfer restrictions and Right of First Refusal (ROFR)

III. Fundraising Strategy & Due Diligence

  • Define fundraising plan
  • ✅ Target amount
  • ✅ Use of funds
  • ✅ Instrument (SAFE / Note / Priced Round)
  • Use market-standard docs (e.g., Y Combinator SAFE)
  • Avoid investors requesting off-market or complex terms
  • Confirm all investors are Accredited Investors
  • Organize all company records & legal documents for diligence
  • Resolve open items (e.g., pre-round advisor grants) before fundraising

IV. Agreements with Service Providers

  • Ensure every employee, advisor, and consultant signs written agreements
  • Use Non-Disclosure & Invention Assignment Agreements (NDIAA) for employees
  • Include work-made-for-hire and IP assignment clauses
  • Add indemnification clauses confirming originality of work
  • Control and document open-source software usage in products

V. Intellectual Property (IP) Protection

  • Register copyrights for key materials (software, content, etc.)
  • Use proper , ™, and notices on all assets
  • Secure rights of publicity / model releases for any individual’s likeness
  • Designate a DMCA agent and implement a takedown policy (if applicable)

VI. Privacy Policy & Terms of Use

  • Draft custom Privacy Policy and Terms of Use (don’t copy others!)
  • Privacy Policy: Describe data collection, use, and sharing clearly
  • Privacy Policy: Include opt-out mechanism and data security practices
  • Terms of Use: Define permissible use, warranties, liability limits, governing law
  • Terms of Use: Clarify ownership and license rights for user-generated content