Investments: AI Slashes SAFE Review Legal Fees by 70%
With BestAgreement.AI, Angel investor signed a deal in only 3 days, saving 2 to 3 weeks on the SAFE review and about 70% of costs on lawyer support.
2m
on Preliminary SAFE review
3
Days for the Agreement Signing
$2,000
Saved on a Lawyer's Service
Overview
With BestAgreement.AI, you can check an agreement for red flags and compare versions, detecting their differences in minutes.
This case study shows how an angel investor streamlined his deal-signing process using AI, saving time and $2,000 in legal fees.
Problem Statement
- An angel investor often lost great deals due to legal delays.
- He used to wait 4 to 5 days for the lawyer's feedback, which slowed the deal signing for 2 to 3 weeks.
- Several iterations of the SAFE proofreading could cost him up to $10,000.
- Meanwhile, the startup could secure funding from elsewhere, leaving him without a stake.
Solution
Instead of involving a lawyer at every stage of the SAFE review, an angel investor used BestAgreement.AI first:
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BestAgreement.AI allows you to analyze SAFE before signing to uncover hidden risks.
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It compares different versions of it within seconds, highlighting any differences.
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You can instantly send the comparison to your counterparty for further amendments.
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Preliminary check only takes minutes with AI, instead of hours or even days with lawyers’ involvement.
This video showcases how an angel investor compare two version of the same SAFE agreement:
Results
- BestAgreement.AI allowed the investor to detect red flags in SAFE without lawyer participation.
- It only took the lawyer 20 minutes to complete final review.
- The investor cut his legal fees for the SAFE review by 70%.
- He signed the deal within only 3 days, saving 2-3 weeks due to the automation on the initial stage.
Time Spent On a Preliminary SAFE Review
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With Lawyer assistance: 2+ hours
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With BestAgreement.AI: 30 seconds
Conclusion
Due to BestAgreement.AI, both the startup team and the investor saved at least two weeks on communications.
Moreover, the investor saved at least $2,000 in legal fees.