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VC Lab creates streamlined documents for start-up investment agreements


By Jesse Schwartz
Published: October 20th, 2021

VC Lab, an accelerator for venture capital firms, is offering free documents to help start-ups and investors streamline the agreement process.

VC Lab aims to improve on the current standard paperwork, which requires specialized lawyers whose time can cost over $100,000 per investment. The accelerator’s new boilerplate document package, known as Cornerstone, would save time and money for both start-ups and investors, in addition to making fund governance structure more accessible.

“The new managers who are getting into venture are coming in with a passion for change,” says Adeo Ressi, co-founder of VC Lab. “They really want to help the companies they work with to succeed at any cost. They don’t need 200 to 400 pages of legal agreements governing every small decision that they make. They need lean and light, easy-to-use agreements.”

Cornerstone is only 33 pages and features a basic term sheet, a subscription agreement and an LPA. Other improvements include a streamlined list of definitions, simplified sections on management fees, and triggers for limited operator mode.

“There’s been widespread recognition that fund formation docs are ridiculously complex and in need of an overhaul,” says Hans Kim, a seasoned start-up lawyer in Silicon Valley and co-author of Cornerstone. “I’ve had numerous founder clients who made money and want to put their capital to good use through investing. But if they get more serious than personal angel investing, you refer them to a fund formation lawyer. Then they see the price and have to think twice.”

Ressi adds that, in the long run, Cornerstone “will create a real positive change for humanity, because no matter where you are in the world, you can pursue an idea to make the world a better place and find the resources you need to make it a reality.”

To access the Cornerstone document, click here.

Source: TechCrunch

Posted under: Tech Transfer e-News

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