New VC Service Level Agreement

http://startupboy.com/2013/06/28/a-venture-sla/

by lordgeek • 13 years ago

6 1 13 years ago

startupboy.com

prakster• 13 years ago

Key parts:

Imagine this pitch (a VC pitching a founder):

"Hello, we’re Founder Friendly Capital. We

• Give you a quick and clear answer. 3 meetings, 2 weeks, yes or no. • Sign up to a plain-English, Founder-Friendly Termsheet. We pay our own legal costs. • 1x Liquidation Preference, no veto on Arms Length transactions. Four weeks to decide. No one-way NDAs. • We’ll always do our pro-rata in the future or sell you back our stake. • Will never bring in an outside CEO without at least 50% Founder consent. • You’ll get access to the following resources. X hours of our recruiter time. Access to Y network. Office hours with your Partner. • Board Seat above $X, Board Observer below that, no Board Control • No Option Pool Shuffle – the Pre-Money is the true Pre-Money • Minimum investment amount is $__; Minimum ownership percentage is __% • Choose your Partner – don’t be embarrassed to ask • 10% of the Round can be used for Founder Liquidity …"

Well said, Naval.

New VC Service Level Agreement

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