We are about ready to start capital raising on a seed round. What are the pros and cons of retaining a law firm?
Hi Vahid, definately get a lawyer, at least to get your initial funding agreements in place, you can always negotiate retainer terms.
Yes pls and also think ahead of terms of contract you need to negotiate too. Better you on a safe side legally
There is a short list of trusted professionals every business needs. You don't necessarily have to have a retainer agreement with any of them, but you need a lawyer, an accountant, a payroll specialist, an IT professional, and a maintenance person. You will need all of them at some point for some amount of time. If you know who you would go to when it's time for their specialty, that's enough.
Con - the cost depending on the law firm // Pro - the cost to you, your team and your business if you get it wrong
Yes, unless you can confidently negotiate the legal funding terms proposed by investors. Even still, an investor would want you to have a lawyer.
Suggested reading: https://blog.ycombinator.com/how-to-raise-a-seed-round/