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Can you help me understand how this platform, or the contracts alone, would help me close deals? I've never had a deal fall apart at this phase, or in a way tha

Can you help me understand how this platform, or the contracts alone, would help me close deals? I've never had a deal fall apart at this phase, or in a way that I could imagine this helping. If the pitch is that it would save money on legal fees, then that could be a big value add. But if that's the angle, then my last question, regarding whether the docs are meant to be closed-universe and vetted, or open-universe and not vetted becomes critical. Founders wouldn't want to be changing options around and not realizing that they are creating confusing or unexpected results. If they're supposed to still use a lawyer, then that blunts the value add (and the lawyer would likely resist the standardized agreement because it means fewer billable hours). But maybe you can get enough critical mass to be an 800-lb gorilla, like the SAFE has become? I appreciate the quick responses here, and am taking a look at the agreements to see if they could be relevant for our business.

jakestein 3y ago
There are a few related things here: By making contract review and negotiation faster, we speed up your sales cycle and grow revenue faster. Faster sales cycles mean that you get paid faster, which in turn means that you can recycle cash into new customer acquisition investments and grow faster. We wrote a blog post about the math of how sales cycle speed translates to revenue growth here: https://commonpaper.com/blog/impact-of-accelerating-sales-cycles/ https://commonpaper.com/blog/impact-of-accelerating-sales-cy... Some of our users work with attorneys, and some do not. For the folks who do work with attorneys, we still make those relationships more efficient because the scope of negotiation is more narrow. As a simple example, if the attorney helps the founder understand the implications of increasing or decreasing a liability cap, it's straightforward for them to apply that info on their own for many deals in the future. With traditional bespoke contracts, if they see a bunch of redlines to a paragraph about liability, it's much harder for them to reason about whether or not this is safe to sign. We try to help users understand what sort of information tends to go in each variable, but we stop short of providing customized advice. So we can help people understand that a liability cap might be a fixed number (eg $1 million), a multiple of fees paid (eg 1X the last 12 months fees), or unlimited. But we can't advise them on whether or not their particular company should take the risk of a particular level of cap in order to close a particular customer. That's the sort of thing they should talk to an attorney about.

jakestein 3y ago

There are a few related things here: By making contract review and negotiation faster, we speed up your sales cycle and grow revenue faster. Faster sales cycles mean that you get paid faster, which in turn means that you can recycle cash into new customer acquisition investments and grow faster. We wrote a blog post about the math of how sales cycle speed translates to revenue growth here: https://commonpaper.com/blog/impact-of-accelerating-sales-cycles/ https://commonpaper.com/blog/impact-of-accelerating-sales-cy... Some of our users work with attorneys, and some do not. For the folks who do work with attorneys, we still make those relationships more efficient because the scope of negotiation is more narrow. As a simple example, if the attorney helps the founder understand the implications of increasing or decreasing a liability cap, it's straightforward for them to apply that info on their own for many deals in the future. With traditional bespoke contracts, if they see a bunch of redlines to a paragraph about liability, it's much harder for them to reason about whether or not this is safe to sign. We try to help users understand what sort of information tends to go in each variable, but we stop short of providing customized advice. So we can help people understand that a liability cap might be a fixed number (eg $1 million), a multiple of fees paid (eg 1X the last 12 months fees), or unlimited. But we can't advise them on whether or not their particular company should take the risk of a particular level of cap in order to close a particular customer. That's the sort of thing they should talk to an attorney about.