Techstars: 60% Reduction in Review Time

Implementing the Contract AI Suite

Techstars is one of the largest pre-seed investors in the world and for the past 15 years has invested in over 3,300 startups exceeding a $97.9B cumulative accelerator market cap.

Serving thousands of founders and startups per year, Techstars receives thousands of contracts to review, including but not limited to equity financing, mergers and acquisitions, SAFEs and notes.

This array of contracts made it challenging to keep up with the volume, and Techstars knew they needed to supercharge their review process quickly in order to increase their capacity to help start-ups scale.

Graduating Techstars Boulder in 2020, TermScout set out on its mission to change the way the world thinks about contracts.

In spring of 2022, Techstars tapped TermScout to accelerate its contract review process by using TermScout’s Verified™ Contract Review tool, part of the Contract AI Suite, which combines AI + Human QC to achieve a 99% accurate review and 100% key issue coverage in Techstars’ Custom Playbooks.

TermScout was able to reduce Techstars’ contract review time for equity financing contracts by up to 60%, saving almost 2 hours per review. For debt and SAFE financing contracts, the reduction in review time is closer to 90%. These time savings meant that their team could review more contracts in a shorter amount of time.

During this time, equity reviews went so well for Techstars that TermScout was asked to expand its review into SAFE and Note financings, as well as to review financings from multiple additional non-US jurisdictions. Together, Techstars and TermScout have now expanded the deployment of the Contract AI Suite to include both US and international M&As, another critical and time-intensive component of Techstars’ business. TermScout was proving itself a viable solution to ensuring accurate first-pass review on their other high-volume contracts!

Processing over 800 financing and M&A contracts to date using the Contract AI Suite, TermScout has saved Techstars 1,00 hours or more of contract reviews. This allowed Techstars to focus on scaling its operations to support more startups, knowing they had a cutting-edge contract review solution to support their legal team.