Venture Capital William B. Asher, Jr. Testa, Hurwitz & Thibeault, LLP Boston, MA 617 / 248-7000 asher@tht.com tht.com		Should I and my co-founders be personally responsible for the company's representations and warranties in our venture capital financing documents? Whether you are responsible for the representations and warranties is a matter of negotiation. Investors typically expect founders to stand behind the company's factual statements in a seed stage or first round financing. Personal liability is a means to ensure that written disclosure is carefully and completely made, not an insurance policy. Founders should try to negotiate a standard of care that is limited to their own personal knowledge or to certain key topics.

Advice provided herein is presented as general information about recent legal developments. Information is edited to space and should not be construed as specific legal advice or opinion.

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