Ed Reitler: ‘Challenge to Startup Lawyers’

Video interview with Ed Reitler, Partner Reitler Kailas & Rosenblatt

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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 Theodore is a Media Publisher & Event Producer and a great people connector.. She is Founder/CEO Silicon Valley TV which has served the San Francisco Bay Area for 11 years! She has produced Silicon Valley Events for Investors & Startups for 9 years. Pemo loves to video interview venture capitalists & founders to engage the human behind the success stories.. She has been Executive Producer of FinTech Silicon Valley for 5 years, organizing twice monthly FinTech talks & panels in San Francisco & Palo Alto. She believes in learning through a great discussion with experts in the domains. Pemo has a talent to bring the right people together and is an incredible networker. Pemo's events have been seen as supporting Venture Capitalists & Angels in sourcing great deal flow from startups who attend her events. Many founders have received funding through meeting investors at her events. Her favored medium is audio & visual media and she has built up a great body of work of podcasts & videos of panels & interviews in Silicon Valley.startup ecosystem.

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Written by Pemo Theodore