SeedLegals launches tool for investors to start and close deals dramatically simpler and faster
Having become the automated legal solution for start-ups raising funds, SeedLegals is about to launch a similar service for investors wanting to invest in start-ups.
Investors on SeedLegals will be able to build their custom term sheet in a matter of clicks, clone their terms for new deals and then use this as the foundation for creating the entire set of deal documents on the platform. Any misalignment on deal terms with the founder will be highlighted on the platform, allowing parties to get to resolution quicker.
“There are many systemic issues with the way funding rounds are done today. Deal terms sadly aren’t confined to one document, it’s several – cap table, term sheet, shareholders agreement, articles – hundreds of pages, each one incredibly important to the deal for all parties. With hundreds of terms, several documents, and numerous parties tweaking them throughout the process, this causes massive room for significant error, huge professional fees, and time wasted. Our platform aims to change all that. The platform captures both the cap table data and terms selected by the parties to produce one seamless, consistent set of deal documents” CEO Anthony Rose noted.
“Unlike our founder users, our investor users are doing several deals a year. This often means tons of back-and-forth e-mails and documents between founders, investors, advisors and lawyers, and the more parties there are in the round, the harder it is to know what document you should be reviewing or action you need to take – and that’s just for one deal! As the whole deal workflow is on our platform, investors get the simple real-time update as to what action they need to take or are waiting on for the deal to get over the line.”
This is a new evolution for SeedLegals, which started off as a service purely founder-focused.
“We first started off developing products for founders, but as investors were getting invited on to the platform to review and sign docs, they liked the simplicity of the platform such that I kept getting asked by angels, accelerators and funds when we were going to build something similar for investors. This is the first step.”