Neal Bloom says a heavily marked-up SAFE in a startup data room is a red flag. Extensive edits at an early stage raise questions about who drafted it and whether founders might be difficult to work with.
Unlike what an investor would be looking for. You know, seeing a data room with docs, a heavily marked up safe. For me, like I'll go and I'll to get a safe in a data room and I'll go compare it to a existing safe and if it's been. Let's just clarify terms. Sure, yeah. So let's say I get a document, the funding terms document has been heavily marked up. I'll go. That now makes me say, oh, do you have legal counsel? Did you do this yourself or who now who is your legal counsel? Who did this? And so that's a set of rabbit hole that I start going down. Right. Because certain docs were created to be simple and if you're going and making edits to them, well, how much edits and why and what else have you edited? Now I got to go question everything to a certain regard. And if you're working so hard at it at the earliest stages when there's really nothing to really talk about because the company barely exists, that's also a bit of a flag. Why are you spending so much time on this and are you going to be a problem child to a certain regard on everything? Just to kind of add some vocabulary here, Neil referenced a safe.
