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2 Ways for Entrepreneurs to use the Awesome Power of VentureDocs

VentureDocs

VentureDocs is one of many startups attempting to attack the ancient and staid profession of law.   Most of these startups are focused on the related questions of: “how do I find a lawyer/how do I find a client?”  VentureDocs, on the other hand, is one of a very small number of startups trying to make it easier, more efficient, and less costly to actually practice law.

Through its proprietary web-based system, VentureDocs allows users to generate the documents needed to raise angel or VC capital.  VentureDocs supports common stock, preferred stock, and convertible note financings.

VentureDocs does not recommend that non-lawyers use their documents without adult supervision.  That’s good advice, but there are ways for entrepreneurs to use these documents without running the risk of disastrous non-lawyer lawyering.

  • Education: Having an understanding of the key terms of a financing deal can be extremely valuable for a startup’s founder team.  It avoids the need for a lawyer to explain these terms at hundreds of dollars per hour and helps to put founders on the same page as investors when terms are actually negotiated.  This helps to set expectations and can make it more likely that a deal will actually close.  The VentureDocs system explains these key terms as the user generates the form, providing not only the knowledge, but also the context.
  • Legal Cost Savings: There are many, many great business lawyers who are well capable of serving a startup’s legal needs on a cost-effective basis but don’t have deep experience with funding deals.  Entrepreneurs would do well to ask their lawyers to use VentureDocs, which will give the lawyer not only valuable forms, but also an explanation of the most important terms.  Once the lawyer has geared up on the context of funding deals, he or she can cruise home with the documents and terms well in hand.

The VentureDocs platform can benefit entrepreneurs, investors, and lawyers alike with its easy-to-use interface, educational component, and top-notch legal documents, and is currently offering a free beta-test period for users.

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About the Author

Clint Costa is an attorney and CPA with the Chicago law firm of Harrison & Held, LLP, working with startups, entrepreneurs, and privately held companies on all manner of official-sounding legal and tax matters. Reach Clint at ccosta@harrisonheld.com or (312) 803-7104.

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