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A simple analog for first time founders is standard docs (series AA & SAFE) vs non standard docs. As an aside, I think it's really hard to get clean terms when
by randall 12y ago
A simple analog for first time founders is standard docs (series AA & SAFE) vs non standard docs.
As an aside, I think it's really hard to get clean terms when you're outside silicon valley... I had a friend raise money in Utah recently and he was saddled with all sorts of strangeness. (board for a $200k seed investment, etc.)
Another startup hub advantage.
- jamornh 12y agoThank you, yes that's a great first filter (standard vs non-standard docs.) Though, as you said, unfortunately it's rare for terms outside the valley to be standard so that might not be as helpful a criteria for founders outside the Valley, and especially for us here in Asia.
- AndrewKemendo 12y agoAs an aside, I think it's really hard to get clean terms when you're outside silicon valley Which is the whole point. I was told point blank by Cooley that no one outside of the valley will ever do SAFE because it is different. They also will never do post money options pools which are what YC seems to push for. So good luck everyone else (myself included).
- yesimahuman 12y agoNot true. I did a Safe earlier this year with a VC firm in the midwest. Yes, I had to be firm about it but all sides were really happy with it. Things are changing.
- AndrewKemendo 12y agoThat's awesome and congrats, but my guess is you are an outlier and probably have some significant leverage in your market.
- yesimahuman 12y agoPerhaps then we just need more companies gaining traction? Then it's not so much an issue of funding environment but a relative lack of strong startups.
- hkmurakami 12y agoSAFE may be met with more resistance outside SV but it's certainly not a deal breaker. Sibling cites a midwest firm that agreed to it, and I know one in East Asia that agreed to it.
- jfarmer 12y agoI've heard that from friends raising outside Silicon Valley, Seattle, and NYC, too. "Shark Tank" terms, so to speak.
- yesimahuman 12y agoI raised a clean $1M with a YC Safe note from a firm in Fargo, ND of all places. Took less than a month from initial meeting to cash in the bank. Times have changed.