One part of what we are doing with Grow VC is to try and speed up activities that are required to get funding. There are plenty of action points that can’t be forced to happen faster (at least not that much), like getting to know new people, build deep enough understanding from the business model, do proper due diligence etc. However, there are some areas where things can be innovated to enable thing to happen faster.
Naturally some of these things are very basic, better contact and communications tools etc., stuff that we are building directly into Grow VC platform, but in addition there are also other areas that we want to develop.
Here’s few key areas that we have recognized and that could have big impact beyond our own service:
- build “common language” of what type of startup/venture is in question
- tools for “agreeing logistics”, for “term sheet” type of items between parties – to help build the common understanding of initial expectations and then, more detailed mutual understanding of each item in detail. Before entering to actual agreement (commitment).
In Grow VC, we will work on developing tools and solutions to these two areas, but instead of just doing it by ourselves and only for our service & users, we want to open up these key areas to much wider audience. – Both, to help us develop these and to help support startups and investors around the globe.
In the spirit of creative commons model, we are launching a separate non-profit initiative for this development – The Startup Commons.
Startup Commons is a nonprofit initiative dedicated to making startup funding more understandable and cost effective and to make closing deals easier for entrepreneurs and investors alike, consistent with the rules of investing.
The aim is to build common terminology to categorize different types of startups by their growth potential and risk position, provide free documentation and tools for closing smaller deals. The focus is for deals below 1 Million, where the cost of “agreeing and building common understanding ” is percentually high considering the size of the deal itself.
In addition to common “terminology and categories”, If we can help lower these costs from, say 15-30K to around 5K in seed level deals, it will have great impact to all parties involved.
We are just getting started and will work to get people and organizations around the globe involved to help us develop this initiative for the common good of entrepreneurship.
If you like the idea – Get involved!
You can start by sharing your comments and ideas in comments and if you are interested in more “hands on” role, please contact us directly. – There is also a LinkedIn Group that you can join.
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- Also Sand Hill Agrees: New VC Models Are needed (growvc.com)
- The Funded Publishes Ideal First Round Term Sheet (techcrunch.com)
- Startups: Do you need Non-Disclosure Agreements? (startupprofessionals.com)
- The Next Step in Standardized Term Sheets: VC Declarations (ensight.org)
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