🔥 Excited to announce the launch of TheOnePoint — 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 – VC’s legal fees 💸
Most startup founders don’t realize they’re paying for something they shouldn’t.
Yet… 99% of VCs still include it.
As Auren Hoffman (GP at Flex Capital) shared with me on the podcast, this isn’t just a small line item.
📖 Read Auren’s original post below, and 🎧 listen to this podcast episode on YouTube or Spotify
It can eat up 1–3% of a round and drag out closings by weeks.
👉 Imagine closing a $2M round and watching $50K evaporate straight into opposing counsel’s pocket.
It’s an outdated artifact in term sheets, which is:
🚫 Investor unfriendly (why should other investors subsidize one VC’s lawyer?)
🚫 LP unfriendly (hidden fees eroding returns)
But founders can push back.
And some funds (like Flex Capital, etc.) are already proving it’s possible to run deals without burdening the founders.
🎧 We broke down why this clause exists, why it’s toxic for founders and LPs, and what a more founder-friendly future might look like.
And, it’s not like Auren is the only one highlighting this topic of fees.
Matan Hazanov – Enigma Ventures highlights the topic of due diligence costs HERE
Michael Jackson highlights the topic of German notary costs HERE
Florian Huber - EWOR highlights the topic of bureaucratic red tape & (surprise-surprise) German notary costs HERE
And this is just the start — every episode of ‘Sharp Takes’ will cut through the noise to surface the ideas, perspectives, and shifts that matter most to founders and investors.
