Selecting legal counsel for your new venture is one of the first decisions you’ll have to make as a startup entrepreneur – and it’s one you shouldn’t take lightly. While corporate counsel typically doesn’t have a lot of complex work early on, there’s a good chance you will be with that person or firm throughout the life cycle of your company.
As your company matures, the legal issues you’ll be asking your lawyer to tackle will become more demanding. You’ll need someone in your corner you value and respect.
Look for an attorney who has represented companies in your space. That person will be familiar with, and be able to anticipate, many of the issues you are likely to face.
ReplyDeleteMake sure to explain your company idea, where you are located, why you are looking for counsel now, and what you want the lawyer to accomplish for you in the in the near term. You want to entice the best lawyers – but they’re usually busy and probably don’t need to represent another startup. They need to feel as if they will be missing out on an opportunity to work with the next Facebook.
ReplyDeleteExcitement is key — if the lawyer perceives you as just another startup in the stable, you won’t likely get the attention from that person you deserve. Also, have the lawyer give you a pitch of sorts: he or she should talk to you about their background, experience with other companies in your space and at your stage, and the services that their firm can provide your company.
ReplyDeleteThe most important factor in choosing a lawyer is whether you will want to work with this person over the long run. Make sure the lawyer is working for your company, and not another constituency. This point is a big one for some of the “marquee” law firms and often gets overlooked by entrepreneurs.
ReplyDeleteAsk about whether the law firm will require equity up front. If they do, negotiate this (it always is negotiable, even when firms say it isn’t).
ReplyDeleteTalk about billing rates and project billing for particular tasks (incorporation, note financings, license agreements, venture financing rounds, etc). Ask the lawyers if they bill for attendance at board meetings (most don’t for early stage companies).
Take your time selecting a lawyer, and get it right. It could end up being one of the more important decisions you make for your startup
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