Stock Purchase Agreement
Also called SPA
A share purchase agreement: the definitive contract in a priced round or acquisition that sets out the terms on which shares are bought and sold, formalizing what the term sheet outlined.
Why it matters
The SPA is where the deal becomes legally binding, with all the representations, warranties, and conditions spelled out. Founders should understand its key terms rather than treat it as boilerplate their lawyers alone handle.
For example
The priced round closes when both sides sign the share purchase agreement, the binding contract that formalizes the term sheet's valuation and terms.
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Related terms
Also in Starting Up
See how founders actually handle this on Co-founders, team and legal, part of the Starting Up hub.
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