Using standard paperwork and hiring a lawyer experienced in startups can help you avoid unfavorable terms during fundraising.

Don't customize legal documents unnecessarily; instead, get quotes and specifications before spending money on legal services.

Always read every fundraising document thoroughly to avoid agreeing to unfavorable terms you might not understand.

The old fundraising process could take months and cost between $25,000 to $100,000 in legal fees, making it inflexible and burdensome for startups.

Use online services for incorporation to save costs; hiring a lawyer is only necessary for complex legal matters.

Three major changes in startup financing over the years are the structure of fundraising documents, easier access to these documents online, and a greater focus on minimizing the time spent on fundraising.

The standard Y Combinator document for fundraising is now a post-money safe, which simplifies the investment process for both investors and founders.

It's essential to keep track of signed documents when raising money, as different investors may have varying rights and obligations.

Companies are becoming cheaper to start and raise funds due to advancements in legal automation and standardization, making it easier for investors to invest.