A Startup Knows It Needs a Lawyer When:

ithacaVC

Cost is the overriding issue for startups when it comes to properly engaging a lawyer. My general retort on this point is this: expect to incur real lawyer costs and get over it. Lawyer time required (including vesting agreements for founders): 3 to 6 hours. And each award to a given employee requires a separate grant agreement laying out the terms of the grant.

House Passes Crowdfunding Bill: FAQ’s for Entrepreneurs

Scott Edward Walker

Second, having hundreds of stockholders is an administrative nightmare and will be time-consuming and costly. Last week, the U.S. House of Representatives passed a crowdfunding bill that will allow startups to offer and sell securities via crowdfunding sites and social networking sites.

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Series Seed, eh!

StartupCFO

If you’ve raised capital before you know that the term sheet is the least of your worries as it’s just a precursor to a much bigger set of definitive agreements including a Shareholders Agreement and Subscription Agreement (or Investor Rights and Purchase Agreements in the US). I recently saw a $100K seed investment that required a 47 page subscription agreement and similarly large Shareholders agreement.