Terms of Service for Startups
Terms a pre-seed or seed startup can actually ship — not a 12-page legal artifact that took a $5k engagement to draft.
- Calibrated for what you actually need at pre-seed / seed stage
- Covers the fundamentals without the Fortune-500 padding
- Upgrade path: re-audit and re-generate when you raise / hit thresholds
A pre-seed startup's terms of service do not need to be the 12-page legal artifact a Series-B company has. They need to cover the fundamentals — who you are, what your product does, what users can't do, how payment works, governing law, and how disputes get resolved. Everything beyond that is optimization. This page generates terms calibrated for the "we need this to launch on Tuesday" reality, not the "let's spend $5k on legal review" reality.
Disclosures that matter for startup.
Identity + governing law
Who the legal entity is, where it's incorporated, what law governs the contract. Most early startups skip "incorporated in Delaware" and end up with an ambiguous jurisdiction.
Product description
A one-paragraph plain-language description of what the product does. Required for EU CRD Art. 6 if you have any EU users, useful for clarity even if not.
Acceptable use / prohibited conduct
What users can't do with the product — abuse, scraping, reverse engineering, building competing products from the data. The shape of this clause matters more than the length.
Liability cap + standard carve-outs
Cap aggregate liability at fees paid in trailing 12 months (or $100 for free products). Carve out fraud, gross negligence, IP infringement, confidentiality breach. Skip the over-broad waivers — courts won't enforce them.
Dispute resolution
Pick courts (small claims-friendly) or arbitration. For startups, courts in your state of incorporation is the simplest default. Add arbitration later when you have the volume to justify it.
Modification mechanism
Reasonable notice (30 days) for material changes, right to terminate if user doesn't accept. Skip "we can change at any time without notice" — it's unenforceable.
Where startup terms usually go wrong.
Copy-pasting from a Series-B company's terms
Reads as a tonal mismatch (way too lawyerly for your product), creates obligations you can't meet (SLAs, support response times), and bakes in operational assumptions you don't have.
No terms at all
Common at pre-launch. Even a 1-page terms is better than none — sets default rules in your favor and signals professionalism.
Over-broad content licenses
Asking for "perpetual, worldwide, irrevocable license to use your content for any purpose including training AI models" attracts negative attention and gets you on bad-startup lists. Standard SaaS license scope is sufficient.
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Questions people ask about a startup terms of service.
Other industries, same terms of service.
A real anonymized example for startup.
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