ExpertCEO

I am bootstrapping a software startup and need an attorney to help with incorporation and IP acquisition. I have used a major law firm in a previous venture-funded startup but they are cost-prohibitive (even if I did have VC-funding). I would like to use a boutique firm or ideally an independent attorney that used to work at a major law firm and am wondering what a reasonable hourly rate might be. I am based in the SF Bay Area but am only partial to local attorneys because of the higher likelihood of their having experience with technology startups.

Thanks!

I'm not familiar with any boutique firms that specialize in this area, but I believe many of the "major" firms have special programs tailored to the small entrepreneur that want to set up straight forward corporations and simple, standard financing documents. There are many, but here are three contacts:

John Bautista< This e-mail address is being protected from spambots. You need JavaScript enabled to view it >

Yokum Taku < This e-mail address is being protected from spambots. You need JavaScript enabled to view it >

Richard Dickson < This e-mail address is being protected from spambots. You need JavaScript enabled to view it >

On the IP side, I've been happy with Bob Moll at Patent Planet: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Not sure what your needs are, but he helped us file two US patent applications and has been a trusted advisor.

He's formerly of Wilson, Sonsini... and has been independent for about 12 years. Based in Los Altos. Reasonably priced relative to big firm attorneys, and has a dollar cap on applications.

Morgan

I use Dion Persson at www.simplicitylaw.com as they met our needs for an affordable and fixed-price (not hourly...), by the job, legal firm that is growing on a national basis.

He has done start-up work for us, including review of term sheets done by Sonsini and less involved work.

No Bay office yet but now in Denver and Phoenix I beleive.

Best of luck,
Paul

Beware when looking for "cheap" legal help for your startup. I used an independent lawyer claiming to specialize in small business and it was the worst mistake I made. His advice actually cost me thousands in legal and accounting fees to work around later.

I'd agree with Ken that you should consider a larger Silicon Valley firm that specializes in startups instead. The good ones that really focus on startups have ways to defer fees until your first round, assuming you're going that direction. They also have tons of contacts that you can leverage.

Note that not all large firms have these programs. Orrick doesn't as far as I know. Wilson Sonsini (WSGR) does though, and I'd recommend them.

As for rates, I've used a lawyer at less than $200/hr, and it was a huge mistake. I've used a couple at $225-$250, which I thought was a pretty good deal for straightforward work. And then I've used lawyers above $500/hr, which came with a lot of experience and other advantages. And of course the higher priced lawyer made use of paralegals to keep the average rate down. Next time I start a company, I'm going straight to a proven valley firm.

We have been happy with Dave Hubb with Silicon Law: siliconlaw.com/david_hubb.html. He is located in the Bay Area, was a partner at one of the big firms and now that he is on his own, charges 1/2 as much. He handles all of our corporate governance and has the contacts to bring in the right subject matter experts when necessary.

Thank you for your recommendations. I will be contacting some of the attorneys you suggested.

In general I agree with the idea that cheap legal help that you don't know can be a waste of money or worse. However, if you know them, finding people who have the skills without the overhead can be a a significant benefit for a bootstrapping company.

I use Ryan Werner (www.rlwerner.com). He is a college roommate (25 year ago), and has been a partner at a high-dollar San Francisco-based firm. He now is back and forth between France and the US and does most of his work remotely. He is a great guy, as well as being a smart and capable lawyer. His rate is a fraction of what you would pay for his skill level in a big firm.

Paul,

Thanks for the recommendation to SimplicityLaw. Spoke with Dion and a colleague today. They now have an attorney based in SF that used to work for Fenwick & West. Liked their approach, expertise, business model and vision, so I selected them.

My former VC recommended another attorney. I came an inch close to selecting him but he required a retainer fee we had never discussed and which was twice the amount of his original proposal without any justification. Moreover, I sent him an email saying that I was ready to move forward but based on the original quote. He didn't respond quickly, so I posted here. He actually would have been less expensive than Dion and company but I heeded others' advice on this post and did not base the decision solely on price.

I appreciate the existence of ExpertCEO - great resource for these kinds of issues and the kindness of those who responded to my post with recommendations.

I noted several recommendations to large firms in the responses. I used one that is prominently mentioned in the responses during startup, and found that the Associate and paralegal help that was put onto these matters was still expensive - but worse, provided poor responsiveness and some shoddy work that caused problems downstream. Admittedly, this was in 1999-2000 when the stronger players were busy minting out IPOs right and left. The primary lesson is to ensure that you have or you are getting the experience needed to get to good quality outputs from these activities.

Within my Life Sciences/Biotech arena, I have developed great respect for the industry leadership activities of Cooley Godward Kronish, and have found them willing to work very practically with me on quick and informal advice and cutting out unnecessary expense where possible. I would recommend:

Fred Dorey: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Bob Brigham: This e-mail address is being protected from spambots. You need JavaScript enabled to view it