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Get Rid of the Friction

Josh Kopleman has today’s great post up titled How to "Ask for the Order".  After I read it, I thought a better title would have been "Lubricating Commercial Transactions", but then again, I’m not a titleist (one who is excellent at making up titles.)  I learn this lesson over and over again, especially after a company I’ve made a seed investment in gets a bill from their lawyer for $42,000 for doing very little on a financing.

May 8th, 2008 by     Categories: Great Posts    
  • Johnny

    Just today I was speaking with another entrepreneur about the silly bills we have both received from our lawyers after closing our Series A.

    I closed a $5M Series A = Lawyer bill $38,000
    He closed a $12M Series A = Lawyer bill $125,000

    I can assure you that the Series A on my part may have been the easiest one the attorney had ever done. Nowadays, I put these lawyers on a very short leash. I've found that one of the biggest challenges is that the VC's and these “independent” law firms are best of friends in many cases. In the end who pays for these high premiums are the poor shareholders and employees of the company.