When you were pacing your room at midnight dreaming up the idea that would be the next big thing, you probably were not thinking about the securities laws, and, honestly, who can blame you? Now that you want to make that dream a reality, however, you will need to know something about this complex area of the law because it will play a critical role in the success or failure of your startup. The reason the securities laws are so important to your startup is because these are the laws that will allow your startup to raise, or prevent your startup from raising, money from investors. Consequently, whether you are a software startup or a medtech firm, whether you have four cofounders or are running your business alone, whether you are a local business or a national company, if you plan to have investors, the securities laws matter to you.
Startup founders often wonder if they should use online legal documentation services, rather than hiring an attorney. There are many online providers out there, and the temptation to save on legal fees by using this seemingly low-cost alternative can be powerful, especially for founders who may already be “maxing-out” their credit cards to pay startup expenses.
Now, since I am an attorney, you may think that I will, automatically, be opposed to the use of online legal documentation services. On the contrary, however, I have long been Continue reading