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
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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