AngelList, the social network for startups and investors, launched a new Docs feature yesterday to help startups sign and close seed rounds online. The new service gives US-based startups a standard term sheet, automatically generated closing documents as well as numerous tools to make the whole investment process as seamless and easy as possible. Unfortunately, Docs will work just for US startups – for now.
While AngelList Docs might mean a small revolution for US startups in terms of legal fees that Techcrunch’s Leena Rao notes are normally in the tens of thousands of dollars, the process still isn’t applicable to European startups. That is, unless they setup a company in Delaware which co-founder Naval Ravikant, commenting for Netocratic, said they actually did to attract US investors. Ravikant goes further:
It’d be nice if we could offer something like this for European and other startups eventually, although I’m sure that navigating regulations will be non-trivial. Even in the US, we can only offer this because of the JOBS Act which passed recently.
To put it plainly, making AngelList Docs compatible with European standards might be tricky and while most Eastern European countries are members of the EU, still not trivial at all. Some countries, such as Croatia or Serbia, still make it fairly hard for angel and seed investors to get on board with the newest generation of tech startups. What do you think about the potential for AngelList Docs in Central and Eastern Europe?