TheOnePoint Founder's Stop Reimbursing Your VC's Legal Fees
đĽ Excited to announce the launch of TheOnePoint â Sharp Takes.
A new, punchier podcast format that is shorter, sharper, and yet impactful.
And in the first episode, we talk about a touchy and overlooked topic â VCâs legal fees đ¸Most startup founders donât realize theyâre paying for something they shouldnât.
Yet⌠99% of VCs still include it.
As Auren Hoffman (GP at Flex Capital) shared with me on the podcast, this isnât just a small line item.
It can eat up 1â3% of a round and drag out closings by weeks.
đ Imagine closing a $2M round and watching $50K evaporate straight into opposing counselâs pocket.
Itâs an outdated artifact in term sheets, which is:
đŤ Investor unfriendly (why should other investors subsidize one VCâs lawyer?)
đŤ LP unfriendly (hidden fees eroding returns)
But founders can push back. And some funds (like Flex Capital, etc.) are already proving itâs possible to run deals without burdening the founders.
đ§ We broke down why this clause exists, why itâs toxic for founders and LPs, and what a more founder-friendly future might look like.
And this is just the start â every episode of Sharp Takes will cut through the noise to surface the ideas, perspectives, and shifts that matter most to founders and investors.
Social Links:
Auren Hoffman: https://www.linkedin.com/in/auren/
Flex Capital: https://www.flexcapital.com/
Rohit Yadav: https://www.linkedin.com/in/rohityadav23/
The Big Book of VC: http://bigbook.vc/