The first time I raised venture capital, over a decade ago, I was hit with the same shock that I think every founder goes through, “wait, what, I have to pay the VCs legal bills?” It just seemed strange when the whole point was to talk about how much money the business needed to succeed, not to start siphoning it off immediately for other stuff.
I’m happy that we can say we are now footing the bill for our portion of legal expenses. Bijan has a good post on the details: “My partners and I at Spark Capital are going to pay our own legal fees at the earliest days of the company up to a cap of $25k going forward. If this cap lasts a few rounds even better. The only fine print we can think of is if there are multiple co investors we would ask them to pay their own way as well. If not than we wil just pay our pro rata.”
It’s a small thing, but it’s another way we can keep the focus where it should be - on helping to build great companies not financial engineering.