75% Reduction in Legal Costs for SAFE Note Comparison

Challenge:

A venture capital fund primarily using standard YC SAFE Notes spent $16,000 monthly on legal fees due to manually reviewing modified SAFE Note agreements from startups.

Solution:

The VC Fund adopted the BestAgreement.ai’s Compare feature to automate the analysis of differences between standard and modified SAFE Notes.

Outcome:

BestAgreement.ai’s Compare feature cut legal consultation needs by 75%, saving the fund up to $12,000 per month.

A demo video comparing YC SAFE Note to modified version

Detailed Case:

A California-based venture capital fund invests in 2-3 startups per week, primarily through standard YC SAFE Notes. However, startups frequently submit modified SAFE Note agreements, which require a thorough legal review by the fund’s legal team.This examination costs the fund approximately $4,000 per week.

In June, the VC Fund began using the BestAgreement’s Compare feature (in private beta mode) as one of the early investors in 12New.AI, the company behind Bestagreement.ai.

By automating the analysis of contract differences, the VC Fund reduced legal fees from $16k per month to just $4k per month. As the AI tool accurately identified discrepancies in 75% of cases, legal advice was rarely needed, resulting in monthly savings of around $12,000.

Industry: Venture Capital
Vendor: bestAgreement.ai
Client: A California-based VC Fund