- Source link: https://bothsidesofthetable.com/a-quick-hack-for-speeding-up-term-sheet-and-other-negotiations-518912fc0b24
- TL;DR: Term sheet negotiations can take weeks to complete. If you can get everyone to agree to it, fly all parties out to a single location and get it finished in a few days. You can all be in the room together working out the details and the process moves along much faster.
- How helpful?: 3/5
- Topic Tags: efficiency, term sheet, negotiations,
- Relevant questions addressed: Why do term sheet negotiations take such a long time? How can I speed up this process?
- Summary bullet points
- Getting a term sheet can be an excruciatingly inefficient process
- Between the founder, the VC, the founder’s lawyers, and the VC’s lawyers, the back-and-forth sending of documents, marking them up, and re-marking them up can end up losing the company a lot of time and costing a lot of money.
- This process can be even longer once you get ready to sign formal legal documents
- Mark Suster suggests having a “Signing Party”
- Made every party involved with a project fly to a single location, stay in a hotel together, and work over the details of the deal until everyone was satisfied
- Makes the process exponentially faster
- Paying for everyone’s flights/hotel is a small fee to pay for all of the time, frustration, and potential legal fees you save
- Can be difficult to get everyone to agree to come
- Follow up links