My answer to What are some ways startup attorneys can/should help clients who are in the process of raising investm…
Answer by Raad Ahmed:
One of the earliest things that a startup attorney can assist a client with is selecting the appropriate financial structure for attracting investors. This aspect of business varies so much from company to company, but the need for it is always critical. In many ways, the type of investment you choose will greatly impact the future success of the business. A startup attorney can help you identify the best place to start as far as looking for an investor.
Perhaps you have resources readily available, such as through family or friends. Often, this type of investment is centered more on people believing in YOU rather than the overall success of the business. It’s a personal approach, but it’s not without professional implications—family and friends can certainly require that they own a share in your business. While this type of investment is usually more readily available than other options, an attorney will counsel you on the best way to keep the agreement professional even if the relationship is personal.
Likewise, if you decide to venture out to select a VC or other type of investor, then you will definitely want to be sure that finer details are in the best interest of the company. An attorney will be able to direct you to the appropriate resources for locating a solid investor as well as offering insight into how you can best pitch your business.
There are many things that a startup attorney can help you with that simply can’t be thoroughly elaborated on in a single post. If you’d like to get in touch with a startup attorney, I recommend that you check out our website at. Our attorneys have already assisted over 1000 startups, and we’d be happy to do the same for you! Check out our services and get in touch with us for a consultation.