Ed Reitler: ‘Challenge to Startup Lawyers’

Video interview with Ed Reitler, Partner Reitler Kailas & Rosenblatt

The estimated reading time for this post is 1 seconds

Video interview with Ed Reitler, partner at Reitler Kailas & Rosenblatt.  He graduated Harvard Law School (J.D., 1990), magna cum laude, where he was an Editor and a contributor to the Journal of Law and Public Policy and a contributor to the Harvard Journal of Legislation.  Ed handles a wide variety of corporate matters including private equity, venture capital, mergers & acquisitions, capital markets and joint ventures transactions. Ed handles a wide variety of corporate matters including private equity, venture capital, mergers & acquisitions, capital markets and joint ventures transactions.

Pemo: Fred Wilson, Union Square Ventures, posted a challenge to startup lawyers  & I quote from Above the Law ‘he discusses a recent investment his fund closed, a seed round. The parties used standard form documents, without negotiation, and the investors had no counsel: “We just signed the standard documents, which were tweaked to reflect the round size, share price, and board provision in the term sheet.”  The legal fees for this rather straightforward deal came to $17,000. That’s pocket change for a successful financier like Fred Wilson, but he still wasn’t happy about it. Given how little work was involved, couldn’t the legal bill have been even lower.’  Do you agree Ed & could you give a little feedback about the issue of these costs?

Ed (summary):

If you really want to get the legal costs down to $5k, you have 3 choices:

1) Use Convertible Debt Financing

2) Use Common Stock with some basic contractual rights surrounding it

or

3) Come to our firm we will do the seed financing in preferred stockform with the $5k cap

It’s a loss leader for us but we won’t lose as much as larger firms.  In our case we’re hopefulof developing a long term relationship with the entrepreneur.

Written by
Pemo Theodore

Pemo is a Media Publisher & Event Producer. She is CoFounder/CEO Silicon Valley TV She is the Executive Producer of FinTech Silicon Valley & organizes Bay Area FinTech meetup: Silicon Valley FinTech meetup & Blockchain Music meetup with almost 3k members. She has produced Silicon Valley Events for Investors & Startups 7 years. She video interviews venture capitalists & angel investors & FinTech experts. She partners with videographers to cover San Francisco Bay area startup conferences & meetups with livestreaming, video & foto packages Silicon Valley TV She is based in Silicon Valley & has been involved in online business for 14 years. She has been in small business for 46 years in Ireland, London, Canada & Australia. She also published a free ebook (the findings of 1 year research from VCs, angels & women founders) “Why are Women Funded Less than Men? a crowdsourced conversation” She was TheNextWomen‘s most prolific contributor of 2011. Silicon Valley TV has been noted as a platform for supporting high growth women led companies in Huffington Post

View all articles
Written by Pemo Theodore
%d bloggers like this: