What Is General Counsel and Why Do Startups Need It?

GeneralCounsel (GC) refers to a company’s primary legal advisor - the attorney or legal team responsible for managing legal, governance, and compliance matters that impact the whole business. In a startup, a GC helps founders balance risk and growth by providing legal strategy that aligns with business goals. They help ensure decisions are legally sound, corporate governance is in place, and regulatory obligations are met as the company scales. 

For many early-stage startups, hiring a full-time GC can be expensive before revenue scales. That’s why many founders use outsourced or fractional general counsel - experienced attorneys who work on a subscription or part-time basis to deliver strategic legal support only when needed, while avoiding high retainers or hourly surprises. 

Startups benefit from general counsel by avoiding legal pitfalls in contracts, investor negotiations, regulatory compliance, board governance, and more. This proactive legal involvement often saves time, money, and risk later. 

FAQs

Q:What’s the difference between a startup lawyer and GeneralCounsel?

A: A startup lawyer may handle discrete tasks like drafting a contract or reviewing an agreement. General Counsel provides holistic legal support across the business - from governance and compliance to strategic risk management and investor relations. 

Q: When should a startup hire General Counsel?

A: Consider bringing in GC when you start hiring employees, negotiating investor deals, entering major partnerships, or facing recurring compliance obligations. The earlier you get legal insight, the fewer costly mistakes you make. 

Q: CanGeneral Counsel help with fundraising?

A: Yes.They review term sheets, help structure rounds legally, and advise on investor agreements so you avoid losing key rights or creating unnecessary dilution. Evaluate whether your GC has experience with leading transactions. Some are also very capable transactional attorneys, and some may need to rely on outside transactional counsel for deals.    

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