Finding a Great Lawyer for Your Start-Up

Given the optimism in start-up circles these days, you don’t need much to start a new company – usually just a strong mission, an AWS account and some Diet Coke.  However, one of the few essentials is a great lawyer – a great start-up lawyer.  

Caring for the needs of big companies vs. caring for the needs of start-ups is a bit like caring for a teenager vs. caring for an infant. Founders (especially first-time founders) need someone who understands the common pitfalls and can prevent you from falling into them. You also want someone who respects the challenges of starting a new company. Finally, pick the lawyer (not the law firm) as your partner, and look for someone whom you can trust deeply.

A great start-up lawyer understands that the real benefit of this partnership comes as your business grows, and thus is willing to do a bit more for a bit less in compensation during the early stages. Just like angels or VCs who invest money, start-up lawyers have to choose their projects carefully: they’re making a bet on you and your business. This is why it can sometimes be difficult to get the attention of the best start-up lawyers. The best lawyers want to work with entrepreneurs who educate themselves to work efficiently with lawyers.

The biggest mistake you can make is picking a lawyer you know instead of a lawyer who specializes in start-ups. Think about it this way: if you were diagnosed with a serious illness, would your first visit be to a general practitioner or a specialist in the disease?

Keep in mind the following rules when picking a lawyer:

  • Pick a lawyer who has successfully represented companies you respect. It’s the easiest and most effective filter.
  • Show that you have done your homework and are serious about your business. Educate yourself on the basics of cap tables, governance and BOD work for start-ups. If you don’t know what pro rata means, you probably haven’t worked hard enough.
  • Give the lawyer the opportunity to be an advisor. This means more than superficially asking for his or her advice. Make sure your lawyer is inspired by your mission and expected to tell you when you’re doing something wrong. And ALWAYS be up front about how you expect to engage with your lawyer. Good lawyers will want to know how and when they are going to be compensated before they will invest a bunch of time in you.

The good news: these lawyers (and many other professionals and organizations who help start-ups) are helping educate and empower entrepreneurs by providing templates for common deliverables – for example, freely available term sheetscompany registration forms and cap tables (from Orrick and Fred Wilson). Firms like Clocktower Law disclose their rates online and make it exceptionally easy to get specialized work done.

My Short List of Great Start-up Lawyers

Here are my favorite start-up lawyers.

Mitch Zuklie Orrick
Marc Dupre Gunderson
John Chory Latham
Bill Schnoor Goodwin

There are likely many other great start-up lawyers; however, these are the ones with whom I’ve worked with most closely and know to be solid.  Good luck with your search.

This entry was posted in Companies, Entrepreneurship, Founders, Start-Ups. Bookmark the permalink.

7 Responses to Finding a Great Lawyer for Your Start-Up

  1. Alex Birch says:

    Andy, this equivalent of the Babson 7200 Law course. There is a good book out there: http://www.amazon.com/The-Entrepreneurs-Guide-Business-Law/dp/0538466464 which is great, but it like you emphasizes the value of a great attorney.

  2. This is a great post. The entrepreneur’s that understand the value of partnering with experts that can truly add to their long-term business success are the one’s that poise themselves for success down the road. Nothing you don’t already know!

  3. This is a great post. The entrepreneur’s that understand the value of partnering with experts that can truly add to their long-term business success are the one’s that poise themselves for success down the road. Nothing you don’t already know!

  4. Bill Schnoor says:

    Andy – thank you for including me in your list of start-up lawyers – I greatly appreciate being counted among this group. One point to note: our award-winning Founders Workbench [www.foundersworkbench.com] is a free, online resource that helps entrepreneurs navigate the legal and organizational challenges faced by start-ups and emerging companies. In addition to a lot of relevant background material FWB offers a document driver that enables a founder to generate all the principal legal documents required to launch a new venture (either as an LLC or a corporation), all on a self-serve basis. The current version of the Workbench reflects a lot of suggestions we have received from founders since its launch a few years ago – I invite your readers to check it out and contact us with any questions or suggested improvements.

  5. gwencon says:

    Thanks for enlisting these startup lawyers. For entrepreneurs with great startup ideas planning to pitch for angel group/investors, iSeed , would be very interested for well laid out startup ideas!

  6. Pingback: LawLawLaw 2014-12-31 | Erik J. Heels

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s