The Right Lawyer for a Smart Startup: “The Right Lawyer for a Smart Startup”
When the time comes to negotiate with VCs, expect them to suggest an attorney. Thank them politely — and then go out and get your own expert
“You’ve received a list of terms from a VC group committing the $4 million in first-round funding you were seeking for your technology company. There are a few items you don’t fully understand, and several others you’d like to change. You have been given the name of a general practice lawyer from a neighbor, but you’re uncertain if this individual has any experience in smaller-company financings. The venture capital (VC) firm has offered a few ‘suggestions,’ but you’re a tad uncomfortable because you’re not sure you want to use a lawyer with connections to the investors. What do you do? ”
– Get your own lawyer! Makes sense in this and every other case where you need a lawyer. The article is good at pointing at some of the issues that you should be paying close attention to. Don’t get so excited about being funded that you forget to make sure your business will continue to take care of you. -ed.