Legal Documentation For Venture Backed Seed Deals

Over the last couple of months, both entrepreneurs and some of my colleagues in the venture capital industry have filled the blogosphere by commenting that investments by VCs in seed stage companies require streamlined documentation and processes. They argue that spending weeks negotiating documents and tens of thousands of dollars in legal bills is inappropriate for an investment of only a couple of hundred thousand dollars in a company that is close to its inception.

Even the use of standard form documents, such as those promulgated by the National Venture Capital Association are said to be too burdensome for use in this context. I think this is great news as it suggests 1) that my colleagues are doing more seed deals and 2) that we are interested in creating a process with less friction for entrepreneurs.

by: Mark Solon Highway 12 Ventures http://www.highway12ventures.com

Full Story: http://www.highway12ventures.com/2009/10/09/legal-documentation-for-venture-backed-seed-deals/