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Of technology challenged VCs and lawyers

Algo Legal founder Sandeep Kapoor says venture capital firms and lawyers need to get around to using technology themselves.

“Have you raised money?” This is Sandeep Kapoor, founder and managing partner of Algo Legal, grilling me.

“You are kidding, right. No, I have not.” This is me.

“Okay, have you EVER raised money?” he says.

“Sort of. In the sense that I was part of the company that did.”

“Great. And how long did it take?”

“Eight months.”

“Exactly! That’s not how long it should take. Anything beyond a month is just a waste of everyone’s time, at least till Series A stage. In a very simplistic way, that’s the problem we are trying to solve. Today, when a venture capital transaction is happening, the whole process is inefficient. From term sheet to storage of documents to compliance to actual terms being negotiated, it is a lot of communication over email. Globally, we are at that level where technology can solve for creating documents, arriving at terms, creating a workflow which takes care of all of this and saves everyone the headache of reinventing the wheel over and over again. What was the length of your due diligence checklist?

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Illustrations by Swati Addanki.

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