Introducing
The VAAFE
A New Standard in Venture Capital Transparency & Accountability
The Value Added Agreement for Future Equity (VAAFE) establishes a legally binding framework that transforms investor commitments into enforceable obligations with measurable outcomes. This innovative instrument addresses the disparity between promised strategic assistance and actual support provided to emerging companies, creating accountability through defined deliverables and appropriate remediation protocols.
Converts verbal assurances into contractual obligations with concrete performance metrics
Implements a structured system of incentives and consequences for non-performance
Provides founders with enforceable recourse beyond traditional investment agreements
Establishes clear documentation requirements for promised strategic value-add services
Aligns investor incentives with meaningful actions rather than superficial commitments
“This is truly revolutionary and exactly how we bring accountability in VC investing! I've already started including these in the LPAs where the GP concedes 10 carry basis points to the LP for every time they miss doing one of these actions."- Vishal Tripathi, Next Legacy
"I won't touch another SAFE given their structural flaws that don't hold investors accountable. Founders deserve better. The VAAFE is a big step in the right direction."- Rex Salisbury, Cambrian
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Key Terms & Commitments
Communication Accountability Protocol: Establishes formal response timeframes for networking introductions, with escalating remediation requirements for non-compliance including formal documentation and public acknowledgment obligations.
Value-Add Verification System: Creates a structured framework for measuring investor engagement beyond passive offers of assistance, with proportional equity adjustments for failure to initiate tangible follow-up actions within specified periods.
Public Engagement Standards: Implements guidelines for investor public communications regarding portfolio companies, requiring substantive actions following public statements with philanthropic remediation mechanisms for non-compliance.
Post-Declination Relationship Management: Establishes protocols for investor behavior following investment declination, including formal acknowledgment requirements for subsequent public endorsements of company achievements.
Professional Communication Standards: Institutes remediation processes for specific disempowering communication patterns, with proceeds directed to entrepreneurial support initiatives.
Legal Cost Allocation: Implements European-style attorney fee provisions with information rights implications for attempted negotiation of these terms.
Representation Requirements: Requires investors to maintain accredited status while providing substantive value beyond administrative interactions, with all obligations being fully binding and enforceable.
The VAAFE
The Gold Standard in Accountability
