Bridging the Gap: A Start-Up CEO's Perspective on Legal Counsel

Recently, I found myself seated across the table, and on the opposing side, from the CEO of a burgeoning start-up, poised to discuss my client’s comments to a Master Services Agreement. However, rather than his feedback to our moderate comments, it was the CEO’s frank disclosure that piqued my interest. “Charles,” as we'll call him, explained that he has a reluctance to involve lawyers in his commercial dealings. Charles’ revelation prompted me, as a legal professional, to ask, in response, “But why, Charles?”

Charles’ rationale was enlightening. He believed that lawyers, rather than focusing on the core issues at-hand during negotiations, often drafted documents and prepared mark-ups in a manner that appeared to be more about showcasing their knowledge rather than about addressing the material terms at-issue between the parties. Charles remarked further, “Sometimes, it feels as if the main aim of lawyers is to demonstrate their intellectual prowess.” This statement made me ponder. “Is it possible that some lawyers were letting ego overshadow efficiency and efficacy?”  So, I began to think about the role we lawyers can, and should play, in supporting entrepreneurs and start-ups as they navigate the challenges that are unique to their journeys.

Every start-up or entrepreneur has a distinctive “entrepreneurial journey,” which brings its unique set of commercial and legal challenges. In the early stages, start-ups and entrepreneurs grapple with the nuances of establishing the business, whether as a sole proprietorship, a partnership, or a corporation. This phase of the journey necessitates a grasp of local rules, requisite permits, financing, and potential tax implications. As the enterprise evolves, issues related to intellectual property, such as trademarks or patenting an innovative method, become crucial.

Moreover, as start-ups scale and start to hire, they must navigate labor laws, which encompass everything from crafting employee contracts to ensuring adherence to workplace safety standards. And, any venture into fundraising or attracting investors requires thorough legal oversight to guarantee compliance and protect the interests of all stakeholders. Charles' entrepreneurial trajectory, akin to many others, has undoubtedly intersected, and will continue to intersect, with these multifaceted legal requirements. The imperative for lucid, precise, and relevant legal counsel becomes evident at every juncture of this journey.

The sentiment Charles expressed resonated deeply. It was not merely about dodging hefty legal bills or sidestepping superfluous paperwork. At its core, Charles’ commentary highlighted the essential value lawyers should offer to entrepreneurs and start-ups. Operating in a fluid environment, entrepreneurs and start-ups need commercial and legal allies who comprehend their distinct challenges and offer bespoke advice, which recognizes the vulnerability of founders that nearly every founder experiences but rarely acknowledges or admits.  The dialogue with Charles served as a poignant reminder of the responsibilities we shoulder as lawyers, particularly to founders, entrepreneurs and start-up organizations. Serving as a trusted and value-generating advisor is not about exhibiting expertise or how much revenue a client generates; rather, it is about the depth of a lawyer’s insights that can be tailored to foster, and brought to bear upon, an entrepreneur’s or start-up's ambitions for creation, innovation and growth, and in many, many cases, on a shoe-string budget; and it is about delivering tangible value, and enabling clients to confidently steer through an intricate entrepreneurial maze replete with commercial, technology and legal challenges that, at any point in time, could mean the end to a founder’s, entrepreneur’s or start-up’s journey.