Corporate law · Entrepreneurship

Should we retain a lawyer before we approach investors?

Vahid Behzadi CEO and Founder @OuiCruit; 2 Exits (IPO and Acquisition)

September 23rd, 2017

We are about ready to start capital raising on a seed round. What are the pros and cons of retaining a law firm?

André Diedericks Businesses Development Manager, Diedericks Inc

September 28th, 2017

Hi Vahid, definately get a lawyer, at least to get your initial funding agreements in place, you can always negotiate retainer terms.

ADEDAYO OLABAMIJI CEO Unleashidea Inc, HR Partner, Thought Leader, Author, Idea Innovator, Startups Adviser.

September 24th, 2017

Yes pls and also think ahead of terms of contract you need to negotiate too. Better you on a safe side legally

Paul Garcia President at TABLE

September 25th, 2017

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.

Michael Eagleton 李马克 Australian resident in Shenzhen since 1997, interested in agriculture marketplace platform incubator

September 25th, 2017

Con - the cost depending on the law firm // Pro - the cost to you, your team and your business if you get it wrong

Raymond Williams Software Developer at Vista Entertainment Solutions USA

September 25th, 2017

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/