An attorney and a group of early-stage investors published a set of
documents last night called the “series seed” documents, a set
of contracts for raising a small, seed round of funding.
Ted Wang of law firm Fenwick & West first called for a streamlined early funding process in 2007, with an editorial for VentureBeat titled, “Reinventing the Series A.” The problem, he said, is that the legal hassles and costs don’t change much between a large, institutional venture round and a much smaller seed investment — but it doesn’t really make sense to spend tens of thousands of dollars on legal fees if you’re only raising $500,000.
“Start-up company lawyers are under an intense pressure to keep our fees low on these deals, and we find ourselves struggling meet our clients’ expectations around pricing,” Wang wrote back in 2007. “The result is that these small Series A deals have become a source of unwanted tension between us and our clients.”
To read the full, original article click on this link: Ted Wang and Andreessen Horowitz try to reinvent the seed round | VentureBeat
Author: Anthony Ha
