A quick hack for speeding up term sheet and other negotiations by Mark Suster

  • Source link: https://bothsidesofthetable.com/a-quick-hack-for-speeding-up-term-sheet-and-other-negotiations-518912fc0b24
  • TL;DR: Term sheet negotiations can take weeks to complete. If you can get everyone to agree to it, fly all parties out to a single location and get it finished in a few days. You can all be in the room together working out the details and the process moves along much faster.
  • How helpful?: 3/5
  • Topic Tags: efficiency, term sheet, negotiations,
  • Relevant questions addressed: Why do term sheet negotiations take such a long time? How can I speed up this process?
  • Summary bullet points
  • Getting a term sheet can be an excruciatingly inefficient process
    • Between the founder, the VC, the founder’s lawyers, and the VC’s lawyers, the back-and-forth sending of documents, marking them up, and re-marking them up can end up losing the company a lot of time and costing a lot of money.
    • This process can be even longer once you get ready to sign formal legal documents
  • Mark Suster suggests having a “Signing Party”
    • Made every party involved with a project fly to a single location, stay in a hotel together, and work over the details of the deal until everyone was satisfied
    • Makes the process exponentially faster
    • Paying for everyone’s flights/hotel is a small fee to pay for all of the time, frustration, and potential legal fees you save
    • Can be difficult to get everyone to agree to come
  • Follow up links