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What Is General Counsel and Why Do Startups Need It?
GeneralCounsel (GC) refers to a company’s primary legal advisor - the attorney orlegal team responsible for managing legal, governance, and compliance mattersthat impact the whole business. In a startup, a GC helps founders balance riskand growth by providing legal strategy that aligns with business goals. Theyhelp ensure decisions are legally sound, corporate governance is in place, andregulatory obligations are met as the company scales.
Why Monthly Legal Subscriptions Are Replacing Traditional Law Firms
Over the past few years, businesses across the United States have started rethinking how they work with lawyers. The old model of hourly billing often created stress, unpredictability, and hesitation. Many companies waited to call their attorney until a problem became serious because they were worried about what the bill would look like later.
8 Legal Tips When You Start a Business
So you’ve decided to start a new business, time to make a to-do list. There are several important steps to complete to ensure that your business is properly established and meets legal requirements. We’re here to help make sure you get all your boxes checked off correctly.
FAQs
Open allYes. Even if equity isn’t issued immediately, securities laws still apply.
Yes—each state has its own notice filing requirements and fees.
Penalties vary, but the biggest risk is investors gaining rescission rights.
From the date of your first sale of securities (not closing date).
Limits depend on income/net worth: typically a few thousand dollars annually under Reg CF.
It depends. If managed well, it can signal traction and community buy-in. Poorly structured rounds, however, may complicate future fundraising.
Not necessarily. Many startups issue special share classes or SAFEs without voting rights.
Yes, but only through an SEC-approved crowdfunding portal. Marketing must follow specific rules.
As early as possible - even before you need funding. Building trust early increases your chances of raising capital later.
Yes, but coordination is key. Some VCs view crowdfunding cautiously, so alignment in terms and messaging is important.
Typically no. Most angels are hands-off and contribute via mentorship or networking, while VCs are more likely to take governance roles.
Incubators provide long-term support for early ideas, while accelerators are shorter, intensive programs focused on rapid growth and fundraising.
They usually convert into equity when a priced round (like Seed or Series A) is raised, based on the agreed valuation cap or discount.
Yes. Even informal investments should use proper SAFEs or convertible notes to avoid disputes and support later rounds.
Most companies pursue Series A once they can show consistent product-market fit, revenue growth, and a scalable business model.
Pre-seed supports MVP development and early testing, while seed funding typically backs a product already showing customer traction and involves formal equity.
Taking VC investment usually means giving up some ownership and board influence. This can shift how major company decisions are made.
Alternatives include bootstrapping, private investors, strategic partnerships, and business loans. These options often provide more flexibility while preserving founder equity.
Most VC firms expect 10–20x returns within 5–7 years, which places heavy emphasis on rapid growth and eventual exit strategies.
No. VC funding is best suited for startups with large market opportunities and the potential to scale quickly. Many successful companies grow without venture backing.