Hoffman: Investor legal fee caps dictate how fast a term sheet closes
Auren Hoffman · How to Build a Unicorn in 8 Simple Charts with SafeGraph · Apr 18, 2021 · at 12:42
This episode carries Auren Hoffman's own address, with nobody on the show putting questions to them. It still counts as said, and it is kept out of every score on their page.
Auren Hoffman (CEO of SafeGraph) explains why founders should negotiate legal fee reimbursement caps in venture capital term sheets.
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“The most non-obvious clause to negotiate is the amount that you're supposed to reimburse the investor's legal counsel. You're actually doing your investors a favor by negotiating this. This is an actual win-win to negotiate. The time it takes you to go from term sheet to close is a function of how many dollars there are in this clause.”
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