A rising class of professional “angel” investors–who typically put sums of less than $1 million to work in a start-up company–is changing the venture-capital landscape. Now these angels and their smaller investments, dubbed “seed” stage investments, have their own set of legal documents to go with them.
Ted Wang, an attorney at Silicon Valley law firm Fenwick & West, is on Monday launching a set of seed-stage documents–dubbed Series Seed docs–that he says will cut down the time and cost of making such investments. The problem: Legal documents associated with investing in a start-up–whether an investor is pumping in less than $1 million or more than $10 million–remains unchanged from years ago. A typical set of such documents usually weighs in at more than 100 pages, says Mr. Wang, which considerably drags out the length of time and cost in completing one of these investments.
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Author: Pui-Wing Tam
