lawyer cost for startup documentation

Question

One angel offered me a huge amount of money but wants all sorts of documentation. l am even required to hire a lawyer to create all the documentation. When I approached a couple of professionals recommended by the angel, the costs for creating the documentation at an international law firm would cost us close to USD10000. Is this what I should expect in any case? What shall I do?

Answers: 2 public & 1 private

A70fd274ea
IP Consultant

Shop around -- if you can split the bureaucratic job into small easy pieces costs usually drop substantially. There are plenty of documents you can download a template for free or for US$5-10. Call me if you prefer talking to writing.

Headshot2 250px
Lawyer

It really depends on how "huge" the money is, how the deal is being structured, and what kinds of documentation the angel is demanding.

If this is a Series A-type investment of multiple millions of dollars, then $10K isn't crazy. Those rounds usually involve a lot of paper, unfortunately: a whole set of interrelated contracts, amending the corporate charter, etc.

If it's a $10K or $100K investment, though, then you may be better off with a simpler deal structure, perhaps convertible debt. Take a look at the Series Seed documents (http://www.seriesseed.com/) for an idea of what a simpler deal can look like. One of those can be put together for $5K or less.

If you haven't actually incorporated, then you'd need to do that too (first).

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