Categories: Entrepreneurship

Should the VC pick the Legal fee tab of the startup? Yes, it happens in the Valley

A very interesting short conversation with Bijan Sabet (@bijan), General Partner, Sparkcapital about the changing workings of VCs with startups (for the better) in the US. He led investments in Twitter, Tumblr.

VCs need to improve their image with entrepreneurs
SparkCapital was the first in the industry to waive the requirement that startups pay a VC’s legal fees after a funding round closes. This made him and SparkCapital unpopular.
Spark stopped mandating non-compete clauses for founders and their employees as far back as 2008. In California non-competes are unenforceable, and thus largely non-existent in agreements.
VCs aren’t demanding as large stakes in the companies and are less insistent on board seats.

Such terms are so encouraging to an entrepreneur and the entire startup eco-system.

Source: Pandodaily

BG Mahesh

Internet application ideator and implementor. Been there and done that since early 1990s. I like to present data to the common man in the simplest manner on the internet.