A Startup Knows It Needs a Lawyer When:


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.

Series Seed, eh!


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.