Since both parties generally have mobile devices from which they can send such messages, they should generally do so personally as the final step in the agreement. You should consider him a suspect if the other is not prepared to do so. Finally, it is not possible to add conditions to a handshake agreement. For example, there is no way for an investor to use this protocol to offer, as some investors try to invest it when other people do – z.B. to say they will invest in a big ride if you can find a lead. In practice, this kind of commitment has no value as it is a mistake for startups to feel or feel connected to it. It is not even rightly regarded as an offer, but at best as a lead (and one that cools quickly). While the investor cannot add conditions to a handshake agreement, it is possible to change the time frames in which the offer must be accepted and the financing finalized. The objective of these deadlines is to avoid situations in which the investor delays the adoption of the handshake agreement or where the start-up and investor have a valid handshake agreement, but no timetable in which the investor must send his money. These deadlines avoid any uncertainty as to whether or not a valid handshake agreement exists and the expiry date of the handshake agreement, and it should in any case expire if the investor does not finance after a certain period of time. Ten days is a reasonable period of time for both parties to conclude the funding process, but they can decide on another date, provided there is a clear (written) agreement on another deadline. YC is also changing the way it makes its investments. It will now invest in startups on a post-money basis and not on a pre-money safe.
YC invented the fundraising mechanism in 2013, safely. A secure or simple agreement for future equity means that an investor will invest in a company and receive the company`s shares at a later date – an alternative to a convertible bond. A safe is a faster and easier way to get early money into a business, and the idea according to YC was that the owners of these coffers would be early investors in the equity rounds of the A-Series startup or later. We have a standard agreement for all our investments. We invest $1250,000 in a “post-money” agreement for future capital, and we enter into an agreement with the company and the founders that defines certain specific YC guidelines and rights, including a right to participate in future corporate financing cycles (the “YC agreement”).