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Lawyers don't know the first thing about running startups but a good startup lawyer will be able to think strategically right along with the founders - that is,
by grellas 16y ago
Lawyers don't know the first thing about running startups but a good startup lawyer will be able to think strategically right along with the founders - that is, will give advice, not in a ham-handed way that focuses purely on legal risks but rather in a way that in itself helps put those risks in perspective for the founding team so that they can see at a glance what the likelihood and potential severity of each is and how each relates to the potential benefits of the deal.
This fine piece points out that the founders should be doing this, and that is true, but the lawyers themselves should also be doing it. Otherwise, they spend all their time giving very unhelpful advice about why things can never get done.
- amirmc 16y agoWell put. I've gone through the legal process acting for an investor. A lot of the legalese felt like an insurance policy and was dreamed up by the lawyers (read: copy/pasted) for scenarios that neither the investor nor startup cared about. Just like an insurance policy, the real test is when you have to make a claim. That's when you might be grateful for some of the terms. Having said that, I think the way Steve describes it is great. Basically, make sure that the strategy points are identified and dealt with by the management team, not the legal team.