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On the topic of "general lawyer-searching advice", here are some useful links from Venture Hacks: http://www.venturehacks.com/articles/term-sheet-hacks#comment
by nivi 19y ago
On the topic of "general lawyer-searching advice", here are some useful links from Venture Hacks:
http://www.venturehacks.com/articles/term-sheet-hacks#comment-24 http://www.venturehacks.com/articles/term-sheet-hacks#comment-24 :
"There are plenty of lawyers who know VC terms and VC deals very well, yet are not in the VC's back pockets. Ask around your business community - you will quickly learn which lawyers you can trust as being more company/entrepeneur focused, and which ones will be good VC lawyers but too cozy with VC's for a smart entrepeneur to really trust. Doing VC deals on the investor side is a low-margin business given the severe downward fee pressure from the VC's - some firms stock up on VC deals and go for quantity over quality; others will do a VC deal for the Company but will generally only occasionally work with VC's. Also, many VC-back-pocket lawyers will sell themselves to you as having all the connections to the VC's and can get your company in front of all the big players, but that should be an alarm bell. There is a difference - ask around with people who have been there and whose opinion you value and trust, and you will find it."
http://www.venturehacks.com/articles/term-sheet-hacks#lawyers http://www.venturehacks.com/articles/term-sheet-hacks#lawyers :
"Most law firms do a lot more business with VCs than they are likely to do with you. VCs refer new clients to the law firms, hire the law firms regularly, and know the attorneys socially. Where do you think the law firms' loyalty lies?
The basic incentives between you, your law firm, and your prospective investors are not in your favor. Your lawyers make money by executing transactions and your investors simply bring more transactions to your lawyers than you do."
http://www.venturehacks.com/articles/term-sheet-hacks#comment-49 http://www.venturehacks.com/articles/term-sheet-hacks#comment-49 :
"We have always said at our firm that you can represent VCs or entrepreneurs, but not both, for the very reason you identify. You can't aggressively protect a founder if you are concerned that it might cost you the legal work for raising a VC's next fund. The VC community is simply too small, and business matter are too personal. You hit the nail on the head, regardless of what my colleagues say."