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Surely there's a huge opportunity for the market of VCs to favour those that move quickly: Bring an accountant to the startup demo day to look over the books of
by Jabbles 14y ago
Surely there's a huge opportunity for the market of VCs to favour those that move quickly: Bring an accountant to the startup demo day to look over the books of ones you find impressive, a lawyer on call to prepare a (i.e. tweak a standard) contract and a free coupon for a same-day courier service for the founders to return it once they've consulted their lawyer and signed. Then an instant money transfer.
Obviously, this puts an awful lot of power in the hands of the investor that actually attends the demo day. Those VCs (and their backers) willing to do so will face the usual risk/reward tradeoff.
- timjahn 14y agoI think this would only work if the VCs had been regularly paying attention to the company long before Demo Day, and had done their research. I don't think they'd want to invest immediately after seeing the company for the first time.
- eli 14y agoI would want a potential investor to spend a little more time on due diligence than that. Also, does the lawyer work for free? Don't you want to do some of your own research on the investor? This just sounds utterly bonkers.
- akama 14y agoI agree, It is just as important to trust the investor as it is to trust the startup.
- Jabbles 14y agoI don't think many people turned down Yuri Milner's offer. They may feel differently about a bigger, later stage offer, but they may have to trade that off with how quickly they want to start spending money. Would the speed and organisation of a VC impress you?
- eli 14y agoAt the risk of sounding contrarian, yeah I would be very, very skeptical of taking money from someone who is ready to invest after first meeting me a few hours ago. You're likely stuck with this person for the lifetime of your young company.
- swampthing 14y agoWe (Clerky) have a service that lets you do the paperwork part of that with software. It's in private beta, but will be available publicly shortly. No need to have the lawyer on call or courier service - you can just enter in the deal terms, generate docs, and sign electronically.