Technology Lawyer Recommendations?

[business1556]

Hi folks,

I have just founded a new tech start up and we're seeking investment in the area of 300k. A lot of potential investors have asked who our lawyers are and obliviously as a startup, we're trying to keep costs low and thus haven't got one - yet. It looks like its going to be pretty crucial to have one lined up though so I was wondering if anyone had any recommendations?

We build custom build electronic devices and have an online/mobile app platform so IP for hardware & algorithms is important. A general technology focus in the UK, US and Europe is also preferable. As for shareholding/equity/legal contracts etc we have a specialized accountant who generally handles that.

Also, can anyone help me benchmark costs for this kind of thing? How do lawyers usually work? is it all pay by the hour type stuff, pay by the project/activity or monthly fixed fee or what? Also, how much is a good amount to pay for basic legal services and maybe a bit of IP advice? We don't need Mr. Kramer - just someone good enough to cover our ass or maybe play a bit of hard ball with competitors in the future.

Any help on this would be great!

Thanks all!

 

[Michael Thompson]

Depends on how you qualify good lawyer. If you are looking for someone experienced and responsive you should look at small law firms that have lawyers with big firm experience.

 

[Free Lance]

It sounds like you are looking for two types of lawyer. You need a corporate lawyer for the £300k investment. It would help for them to have some technology background as it's always good for them to understand your business - but it's note essential. You then want a lawyer to help you with basic stuff and IP - a commercial lawyer with expertise in your area. Commercial lawyers deal with your contract arrangements with customer and suppliers vs corporate lawyer dealing with your investors and shareholdings.

No offence but your accountant will not have the expertise to help you with investment agreements and the legal side of the equity investment. They should not be crossing that line away from accounting - in the same way as lawyer should not be doing you corporation tax calcs. The investors are looking for you to have a corporate lawyer with business angel/private equity experience. It does not matter very much what area they specialise in but most lawyers with business angel experience will have tech clients.

You can get some decent lawyers who can help in both fields - corporate/commercial.

Pricewise - for this kind of investment it's usually a fixed fee arrangement. It's often treated as a bit of a loss leader by the firms as they are looking to establish relationships with companies with potential. I would expect £5k is about right. If you're using a bigger firm expect to get a junior doing the work - it's good training for them and keep costs down.

Will send you a PM with recommendations.