Cost of Convertible Note Legal Fees

Justin Copeland — Tue, 19 Jan 2010 02:58:13 +0000

Shouldn’t the money you raise go towards building your company and not to your lawyer? We agree, because we believe it is our duty to preserve and protect your company and the money you raise, not waste it with unnecessary legal maneuverings. We’ve done these deals before and don’t have to reinvent the wheel every time someone gets funded. We know what provisions are boilerplate and what provisions need to be negotiated, so we can focus on what is truly important and not waste your time and money.

We offer flat fee, upfront price quotes ranging from $2,500 to $7,500 for either company counsel or investor counsel on a convertible note financing. With us, you know how much you will be charged from the beginning and won’t be shocked when you receive your legal bill. Many large law firms routinely charge in excess of $15,000 for the same service (See http://www.askthevc.com/blog/archives/2007/07/how-much-should-1.php). Prices vary depending on how many parties are involved in the financing, how much due diligence is expected or required, and how much corporate house cleaning needs to take place. As a general rule of thumb, the newer the company, the less the cost.

Cost of Series A Legal Fees

Justin Copeland — Tue, 19 Jan 2010 02:39:56 +0000

Shouldn’t the money you raise go towards building your company and not to your lawyer? We agree, because we believe it is our duty to preserve and protect your company and the money you raise, not waste it with unnecessary legal maneuverings. With the existence of so many good model documents such as the NVCA model documents, The Funded model documents, and TechStars model documents, the lawyers don’t have to reinvent the wheel every time someone gets funded, so long as the startup and the investor agree to start with a set of model documents. We know what provisions are boilerplate and what provisions need to be negotiated, so we can focus on what is truly important and not waste your time and money.

We offer flat fee, upfront price quotes ranging from $5,000 to $20,000 for company counsel on a Series A funding from a VC firm that agrees to use one of the model document sets. For investor counsel, our prices range from $2,500 to $10,000 for a Series A funding based on one of the model document sets. With us, you know how much you will be charged from the beginning and won’t be shocked when you receive your legal bill. Many large law firms routinely charge in excess of $50,000 for the same Series A service (See http://www.startupcompanylawyer.com/2007/12/08/what-should-legal-fees-in-a-series-a-financing-be/, and http://www.askthevc.com/blog/archives/2007/07/how-much-should-1.php). Prices vary depending on how many parties are involved in the funding, how much IP and regulatory due diligence is expected, and how much corporate house cleaning needs to take place. As a general rule of thumb, the newer the company, the less the cost.

Whitehouse Law » financing fees

Cost of Convertible Note Legal Fees

Cost of Series A Legal Fees