Investments: VC Reduces Legal Costs on SAFE Reviews
With BestAgreement.AI, Angel VC signed a deal in only 3 days, saving 2 to 3 weeks on SAFE review and about 70% of costs on legal support.
2
Deals Signed Monthly
3
Days for SAFE Review
$2,000
Saved on a Lawyer's Service
Overview
The ‘Compare’ Feature of BestAgreement.AI compares document versions, highlighting differences and ensuring consistency, thus simplifying document review and approval.
This case study shows how a venture investor has streamlined his deal-signing process using AI, saving time and money on lawyer services.
Problem Statement
- An angel VC 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.
- The startup could already secure money from a competing investor, leaving him without a stake.
Vitaly Goncharuk
Angel VC
"Even if the deal fell through, I still had to pay $1,500 an hour for legal services. And there were cases when the deal was successfully signed, but my lawyer's expenses have cost me equal to a third of the investment."
Instead of involving a lawyer at every stage of the SAFE review, VC used BestAgreement.AI for the document review, only asking the lawyer for the final approval.
-
BestAgreement.AI allows you to analyze SAFE before signing to uncover hidden risks.
-
It compares different versions of it within seconds, highlighting any differences.
-
You can instantly send the comparison to your counterparty for further amendments.
-
The whole process takes minutes to complete, instead of hours or even days with lawyers’ involvement.
Video
Results
- BestAgreement.AI allowed the investor to indicate red flags in SAFE without lawyer participation.
- It only took the lawyer 20 minutes to complete the SAFE final review.
- The tool reduced VC's legal costs by 70%.
- VC signed the deal within only 3 days, saving both parties 2-3 weeks on SAFE review.
Vitaly Goncharuk
Angel VC
“I did not involve a lawyer until the last moment—his participation was only necessary at the final stage. For the analysis of the SAFE, I used the AI tool BestAgreement.AI which made the job less then in a minute. As a result, it took me only a few days from starting negotiations to signing the agreement, and I didn’t have to worry that other investors would intercept the deal.”
Time Spent on SAFE review
-
With Lawyer assistance: 2+ weeks on 2-3 iterations of proofreading the document
-
With BestAgreement.AI: 30 seconds for SAFE review and only 3 days to close the deal
Conclusion
BestAgreement.AI can save up to 80% on legal fees while maintaining unbiased results and identifying potential issues in agreements.
In this particular case, the tool has saved a significant amount of resources for all parties involved:
Both the startup team and the investor saved at least two weeks on communications, the lawyer saved about two hours on proofreading the SAFE, and VC saved about $2,000 for legal expenses.