I just re-read the parent post, and was really struck by the reference to “documents filled with unstructured text.” I mean, that’s exactly what commercial contracting is - it doesn’t easily map to a simple schema outside very, very basic transactions.
Fundraising and the SAFE is different because that transaction is really one of the simpler ones at the end of the day - $x for y% of the company based on a valuation cap of $z. Typically the issuer is a Delaware corp, so investors can rely on the fiduciary statutory and common law overlay.
But if it were structured as an investment in an LLC, or a debt financing, where all the rights are basically purely contractual, documenting that deal becomes much more difficult.
I’m not trying to put words in your mouth and saying that’s the problem you’re trying to solve, because I don’t think it is. But the reference to the SAFE is misleading because I think that’s one of the “easier” commercial transactions, and most legal documentation is complicated because the underlying deal is complicated.
I agree that a cloud service agreement is more complicated than a SAFE, and that's a result of the fact that the underlying deal is more complicated.
We use the SAFE as an example of a standard contract because it's one that our target users are familiar with. We believe that there are a lot of lessons worth learning from the SAFE's success, along with other standard contracts like the NVCA Model Docs, IAB Standard Terms, ISDA Master Agreement, etc.
Our users have signed thousands of contracts and closed millions of dollars of deals, so it's working for at least some commercial contracts. Of course, this is a tiny percentage of the overall market. Our bet is that it can become a much larger portion of the market, even if it doesn't get to 100%
But if it were structured as an investment in an LLC, or a debt financing, where all the rights are basically purely contractual, documenting that deal becomes much more difficult.
I’m not trying to put words in your mouth and saying that’s the problem you’re trying to solve, because I don’t think it is. But the reference to the SAFE is misleading because I think that’s one of the “easier” commercial transactions, and most legal documentation is complicated because the underlying deal is complicated.