Looking for a Lawyer for Venture Capital Deals

by Gerry
(Arlington Heights, IL, USA)

Where can I find a listing of Lawyers that have experience reviewing structured deals between Investors and Entrepreneurs?
email address: davidson@knowideas.com
Answer
As for a pure listing, try lawyers.com. You could also do a search on "venture capital lawyers". But if I were you, I would take it a step further. This is someone who is going to help you structure and build your business, so do a lot of interviewing.

First, get client recommendations from your prospective venture capital attorney. Call these clients and ask them:
1. Did this lawyer provide valuable advice?
2. Would you go to this lawyer if you had to do it again?
3. If this lawyer were not available, who would you go to?

Don't take up a lot of their time, but do find out if the venture capital lawyer is any good.

Also, ask the venture capital lawyer some basic questions, as though you don't know the answers. See how he treats you as a novice, and how willing he is to share his knowledge. For example, ask if he knows what these terms mean:
~ Board seat rights (If he misses this one, walk out). It means how many seats on the board of directors that the investor will get.
~ Preemptive rights. It concerns the investor's option to participate in future investment rounds, and to what extent.
~ Weighted average anti-dilution formula. This protects the investor from having their investment diluted.
~ Convertible preferred stock. A special type of stock, usually reserved for investors.

If he can't -- or won't -- explain very clearly what these terms mean, you have the wrong attorney. You need an attorney who can explain a whole lot to you over the course of the negotiation so that you can make the most intelligent decision for your company.

Many law firms specialize in corporate work. That is the kind of law firm you are looking for. In the hot beds of venture capital, like Northern California, Atlanta, and the various tech corridors, you will find a number of lawyers and firms that can help you. Unless you live in a very wealthy area, stay away from local "all purpose" attorneys -- they may want to help, but they likely won't be very good at it. In your case, I would look smack dab in the middle of Chicago's business sector.

Good luck on your search. It sounds like you are really onto something, and that is great. Just great.

CJ and the Business Plan Master Team