The Handshake Deal Protocol
ycombinator.com
The Handshake Deal Protocol
1–10 of 237 posts
Re: The Handshake Deal Protocol
#2This is great protocol for all discussions/agreements. It's pretty hard for any relationship to break down if there's a shared understanding of expectations.
The re-statement/confirmation email is a great weapon against what time+memory do with reality, whether it's in the investment setting, with a partner, with an employee, or, heck, with a friend/spouse.
Re: The Handshake Deal Protocol
#3This is great protocol for all discussions/agreements. It's pretty hard for any relationship to break down if there's a shared understanding of expectations. The re-statement/confirmation email is a great weapon against what time+memory do with reality, whether it's in the investment setting, with a partner, with an employee, or, heck, with a friend/spouse.
I wouldn't expect most "handshake deals" with a friend/spouse to require that level of formality - unless money is changing hands.
Re: The Handshake Deal Protocol
#4[deleted]
Re: The Handshake Deal Protocol
#5This seems completely sound. Is it implicitly understood that all investors get the same terms? I assume that if there is an agreement to invest $100k at $5M cap, then the startup can't go take another $100k at a $4M cap, without giving that same deal to the first investor.
Re: The Handshake Deal Protocol
#6[deleted]
Re: The Handshake Deal Protocol
#7Brb while I go make an Unofficial YC Handshake Deal Protocol app.
Re: The Handshake Deal Protocol
#8[deleted]
Re: The Handshake Deal Protocol
#9This is great protocol for all discussions/agreements. It's pretty hard for any relationship to break down if there's a shared understanding of expectations. The re-statement/confirmation email is a great weapon against what time+memory do with reality, whether it's in the investment setting, with a partner, with an employee, or, heck, with a friend/spouse.
I wouldn't expect most "handshake deals" with a friend/spouse to require that level of formality - unless money is changing hands.
Agreed with the "most" sentiment. But it is worthwhile for anything where a misunderstanding is possible and the consequences of a misunderstanding would be meaningful (to you).
Re: The Handshake Deal Protocol
#10A handshake is generally not taken to be a legally binding contract in itself. An email might be. So it might be worth making it clear in the emails that you don't intend them to be legally binding.