In this episode, I distill some positive and negative lessons about why a startup might need multiple attorneys. The short answer…lawyers are like doctors, they specialize. One size does not fit all situations. Equally important, entrepreneurs need to be careful about who an attorney has a duty of loyalty to. A lawyer that represents a company’s best interest does not by default represent the founder.
Also in this episode, I reintroduce the Venture Capital Coroner’s Report. Previously, I did an entire podcast focused on lessons from failed, VC backed companies. The show failed (I know, ironic, right?). I just couldn’t get enough interviews. However, there’s more than enough material for an occasional segment of this show. The autopsy of VATLER provides an important lesson about disrupting entrenched players (and a resurrection story in the founding of SpotAngels).Bad lawyers are whimpering insurance salesmen – Naval Ravikant, Angel ListClick To Tweet
A Startup Lawyer is Not a Founder’s Lawyer
Jose Ancer – Miller, Egan, Molter & Nelson
Often lawyers are like that coach in the corner of a boxing ring. They’re an experienced, voice of reason in a life or death struggle. Jose Ancer points out, however, that you need to be sure the lawyer in your corner owes his highest allegiance to you. It’s not always obvious. Jose does a great job explaining how attorney loyalty works.
It’s also important to understand that company counsel represents the best interests of the company, including all stockholders, and that can often conflict with the personal interests of individual founders. – Jose Ancer
Inside Story of VATLER’s Shut Down
Hamza Ouazzani Chahdi – Now at SpotAngels.com,
Founders ran head first into a wall called entrenched city government. Follow @HamzaOuazzaniC to track the story of SpotAngels, Hamza’s new attempt to disrupt urban parking by helping you avoid parking tickets.
Bonus Material – More About Naval Ravikant
|Naval says this about himself: “I am the CEO and co-founder of AngelList. I previously co-founded Epinions (which went public as part of Shopping.com) and Vast.com. I’m an active Angel investor, and have invested in dozens of companies, including Twitter, Uber, Docverse and Jambool (both sold to Google), and Mixer Labs and Fluther (both sold to Twitter).”|
Background article from PE Hub on why Naval feels so strongly about lawyers: His Brand Burnished, Naval Ravikant Plans New Fund with Babak Nivi
|Naval Ravikant (little dated)|