So, you've drafted your Term Sheet and it is ready to send out to your investors.
You'll then need to invite them to create a profile on SeedLegals if they haven't done so already.
Then they can either:
a) Sign the agreement on the platform using an e-signature
b) Offer feedback/request changes to your agreements
You should tell your investors that any feedback they wish to give should be substantive changes only - not stylistic ones around wording - that's a waste of your time and theirs. If you agree to their requests, you can make the edits on the SeedLegals platform.
Once investors are happy with the Term Sheet and sign, you'll need to move onto closing the round.
You'll create with us two documents that they'll sign
Disclosure Letter - in here you put disclosures against the warranties in the business - in basic terms this ensures that your investors know about any outstanding debt, litigation or anything else that might effect their decision to invest.
Shareholders Agreement - which formalises in a legally binding agreement most of the items that you created in your Term Sheet, and outlines the process for the purchasing of shares, and includes your bank account details
You'll also share with them your new Articles of Association (essentially the constitution that outlines how your company is run) - but your investors do not sign these.
As before, any feedback on these should be substantive and not stylistic, and most of the negotiation should be done at the Term Sheet stage.
While it's technically advisable to wait until all your investors have signed to collect funds, many investors will simply deposit funds as soon as they have signed the agreement.
At this point, they don't need to do anything else - and you'll send them the share certificates through the platform after all signatures and funds are collected and you've passed the board and shareholders resolution.