Heavybit Membership Paperwork
The final step in becoming a Heavybit member is signing our membership documents. In order to make the process as transparent as possible, we’re publishing templated versions of those documents and a brief description of each. We use Clerky, a legal template service, to produce documents and manage signatures.
We find that legal teams like to suggest edits to these documents. While we encourage founders to have their lawyers review these membership documents, we’ve never accepted edits.
Some companies based outside the US find that our standard warrant structure won’t work for them. We’re happy to work on alternative solutions for non US-based companies.
Once we agree to terms, we’ll send out 4 documents for execution:
- The Warrant Purchase Agreement is the basis of the transaction – in it, founders agree to sell Heavybit a warrant on a fixed amount of common stock. Both the price of that warrant and the price per share will be nominal – we typically pay $1000 for the warrant and set the exercise price at $.01 per share.
- The Warrant itself gives Heavybit the ability to purchase a number of shares of common stock of the member company at a set price. Note that the warrant requires member companies to issue new shares upon exercise; it can’t be filled from an existing option pool
- The Authorization to File authorizes Clerky to file a securities notice on a member company’s behalf.
- The Board Consent Form grants consent for the transaction from the board of directors.