zero friction seed rounds

Download Zero Friction Seed Rounds

Post on 22-Apr-2015

230 views

Embed Size (px)

DESCRIPTION

Open Sourcing Early Stage Investment Documentation and Compliance

TRANSCRIPT

  • 1. Series Seed India powered by Humble Paper Standardizing Early Stage Investment Docs India Module 6, 1st Floor IITM Research Park Chennai, TN - 600001 United States 340 S Lemon Ave #9923 Walnut, CA - 91789 Humble Paper
  • 2. Series Seed India powered by Humble Paper with startups
  • 3. Series Seed India powered by Humble Paper Timing is everything
  • 4. Series Seed India powered by Humble Paper Today India is estimated to be a home to more than 10,000 technology based start-ups with up to 8,000 new start-ups sprouting every year
  • 5. Series Seed India powered by Humble Paper 250+ India v 6,500+US early stage businesses funded every year
  • 6. Series Seed India powered by Humble Paper Even as start-up costs for Internet companies have fallen precipitously over the last few years catalysing the start-up movement in India, legal costs for the same have only gone up
  • 7. Series Seed India powered by Humble Paper Even after investors commit, deals take inordinately long and often fall through
  • 8. Series Seed India powered by Humble Paper Documents currently used for early stage investments actually resemble later stage deals Lack of transparency in early stage investments and typical deal terms leads to over-negotiation and unnecessary friction
  • 9. Series Seed India powered by Humble Paper The need of the hour is to reduce negotiation at early financing rounds to key commercial points with deals being closed quickly using standardized documents
  • 10. Series Seed India powered by Humble Paper Humble Paper is open-sourcing a set of legal documents for seed financing in India and publishing it on the Internet. For free.
  • 11. Series Seed India powered by Humble Paper Initial Release (v 0.0.1) term sheet share subscription and shareholder agreement
  • 12. Series Seed India powered by Humble Paper Guiding Principles Not Proprietary. Open source, licensed under the creative commons license. Language and Structure. Should appear familiar to lawyers but be simple and readable by non-lawyers. Strike a balance between the language in current legal documents and plain english. Help. Clauses should be annotated with helpful commentary justifying their legal and/or commercial utility. Upgrade Path. Each document package should have a clear upgrade path to the next financing stage. Concise. A term sheet should ideally be one or two pages. A shareholder agreement should ideally be 7-10 pages.
  • 13. Series Seed India powered by Humble Paper But we wont stop at just providing the documents for download
  • 14. Series Seed India powered by Humble Paper Weve built a platform to interactively generate ready-to-sign documents using an intuitive questionnaire
  • 15. Series Seed India powered by Humble Paper
  • 16. Series Seed India powered by Humble Paper and were going further to provide a one-stop platform, weve already tied up with a top-tier Indian law firm and with a panel of chartered accountants and company secretaries well track and assist you with your RoC and RBI filings well help simplify and streamline cross-border deals well manage the cap table as each startup passes through successive financing rounds well provide investors with a dashboard to each of their portfolio companies
  • 17. Series Seed India powered by Humble Paper Were just getting started. Request an invite, partner with us or generally reach out to us at support@humblepaper.com