Investment & Capital Formation Legal Services
Position your venture for optimal terms with counsel who understands both sides of the table.
What Is Capital Formation Legal Support?
Capital formation encompasses all legal work involved in raising funds for your company, from preparing your corporate structure for investment to negotiating terms with investors and implementing post-investment governance requirements.
Having worked with venture funds, strategic investors, and founders, we bring perspective to term sheet negotiations that most company-side counsel lack. We understand what investors look for in due diligence and what terms are truly market versus negotiable.
Our Capital Formation Services
Pre-Funding Legal Audit
Identify and remediate issues before they become deal-killers in due diligence.
- Corporate structure and cap table review
- IP assignment verification
- Contract and liability assessment
Term Sheet Negotiation
Negotiate terms that address your interests while maintaining investor relationships.
- Valuation and economic terms analysis
- Protective provisions and control terms
- Board composition and governance
Due Diligence Management
Coordinate responses and manage the process efficiently.
- Data room organization and management
- Disclosure schedule preparation
- Issue identification and resolution
Post-Investment Governance
Implement governance structures that satisfy investors while remaining practical.
- Board meeting protocols and documentation
- Information rights compliance
- Approval workflow implementation
Frequently Asked Questions
What is capital formation legal support?
Capital formation legal support encompasses all legal services needed to raise funding for your company, including pre-funding legal audits, term sheet negotiation, due diligence preparation, investor agreements, and post-investment governance implementation. This ensures your company is legally prepared to accept investment and compliant with securities regulations.
How much does startup fundraising legal support cost?
Startup fundraising legal costs vary based on round complexity. Seed rounds typically cost $15,000-$30,000 in legal fees, while Series A rounds range from $30,000-$75,000. With outside general counsel arrangements, many of these costs are included in your monthly retainer, providing significant savings compared to traditional hourly billing.
What should founders know before negotiating a term sheet?
Before negotiating a term sheet, founders should understand key terms like valuation, liquidation preferences, anti-dilution provisions, board composition, and protective provisions. Having counsel who has worked on both the investor and founder side provides valuable perspective on what terms are market versus negotiable.
How long does the due diligence process take?
Due diligence typically takes 4-8 weeks depending on company complexity and round size. Companies with clean corporate records, organized contracts, and proper IP assignments can move faster. A pre-funding legal audit can identify and remediate issues before due diligence begins, accelerating the process significantly.
Capital Formation Across Industries
We support fundraising for companies across our focus industries, each with unique investor expectations and deal structures.
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