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Seems like a good idea. One issue-- What if the investor doesn't immediately respond to the e-mail? Wouldn't that be sort of like the "partial yes" free optio
by jgross206 14y ago
Seems like a good idea. One issue--
What if the investor doesn't immediately respond to the e-mail? Wouldn't that be sort of like the "partial yes" free option from the article, where they could wait until terms are (or are not) more favorable but still have a seemingly valid claim on an initial agreement?
Perhaps there should be a time limit, or the start-up can have the option of sending a second e-mail withdrawing the initial one?
- redblacktree 14y agoI think in that case, the expectation is that you (as a founder) have no obligation to "keep a place in line" for them. If they never responded, you can consider it a "no."
- quantumhobbit 14y agoWhen is the investor considered to have "stepped out of line"? an hour, a few days, a week or more? What happens if the investor doesn't reply, the startup assumes the no reply is a no, and weeks later the investor sends an out of context "yes" hoping to cash in on the terms of the earlier deal? I know this sounds like a petty concern for a "handshake deal" but the startup's e-mail at step 3 creates a paper trail that an unscrupulous investor could abuse.