Picking up our own tab

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.

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98 notes

  1. lowkeebizz reblogged this from bijan
  2. jfedor reblogged this from bijan and added:
    Applauding Spark for doing this. Hopefully others follow their lead.
  3. marksbirch reblogged this from bijan and added:
    I never understood this either. It just seemed like another money grab by VC’s intent on keeping every nickel and dine...
  4. messel reblogged this from bijan
  5. joshmchugh said: Bravo!
  6. leroy reblogged this from bijan and added:
  7. michael reblogged this from bijan
  8. ncordeiro reblogged this from bijan and added:
    Very interesting move by Bijan and Spark. This move will undoubtedly help Sparks reputation for being founder...
  9. alexcircei reblogged this from bijan
  10. aanwar reblogged this from bijan
  11. shakelaw reblogged this from bijan and added:
    Amen Bijan! We’re building Shake for the same reason: so your portfolio companies can focus their resources on building...