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> I was thinking of a general agreement with acceptable terms on both sides - with specifics to be hashed out later upon incorporation Starting a company is ha
by anamax 16y ago
> I was thinking of a general agreement with acceptable terms on both sides - with specifics to be hashed out later upon incorporation
Starting a company is hard enough without building it on a ticking bomb. It's one thing to make a desk from a couple of sawhorses and a board, it's quite another to play lawyer.
Why do you think that you know enough to get this stuff right?
BTW - not just any attorney will do, you need one who has actually done angel-funded startups before in the relevant jurisdiction.
- marcamillion 16y agoI understand that is the general rule of thumb, and I do agree with it. But I am simply looking at the economics of it. Does it make sense to spend $4K (for example) on legal fees for a deal where I am getting an $8K investment. These aren't the actual figures, but I imagine the legal fees would be at a similar ratio.
- pg 16y agoIf the legal fees are going to be half the investment, I'd wait if I were you.
- anamax 16y ago> Does it make sense to spend $4K (for example) on legal fees for a deal where I am getting an $8K investment. These aren't the actual figures, but I imagine the legal fees would be at a similar ratio. Does it make sense to risk your startup over an $8k investment? > But I am simply looking at the economics of it. Are you looking at economics or merely comparing two numbers, whether or not they're the right numbers? The cost of doing it wrong is not limited by the amount invested, let alone the amount of money you "save". Yes, there's some chance that you might not screw it up, or that your company might fail anyway, rendering the whole thing moot. How much is the additional risk actually worth?