CHAPTER 2Preparing for Fundraising
While it’s tempting to jump right in to fundraising, huge issues can be avoided simply by being a good Boy (or Girl) Scout and being prepared. A capable lawyer, who knows how to do venture deals, is a key part of this. Our friends at Cooley LLP (where Jason was an associate two decades ago) were kind enough to provide some of the content to help us help you be prepared.
Choosing the Right Lawyer
A startup’s legal adviser is an integral partner who will guide a company through its corporate lifecycle from incorporation to acquisition or initial public offering (IPO), and act as trusted adviser and connector to investors and other resources. In selecting an attorney, entrepreneurs have a variety of options to choose from, ranging from solo practitioners to multinational firms. Evaluating these options to find the right fit requires a management team to expend time and energy. This up-front investment can ensure the company avoids common legal pitfalls that can derail startups.
When evaluating candidates for corporate counsel, entrepreneurs should consider a short list of factors, including experience level, cost, and comfort with an attorney’s communication style. For early stage companies, partnering with an attorney or law firm with a proven track record of representing startups can be especially valuable since experienced startup attorneys have an appreciation for the types of legal hurdles emerging companies may face. In addition, they ...