WANTED: Attorneys who fulfill Entrepreneur Wishlists
I attended a WEST (Women Entrepreneurs in Science and Technology) Unpanel event featuring women mentors in biotech careers. Lo and behold, I found myself sitting next to a successful woman spearheading a new business dedicated to women’s dermatological products. This entrepreneur had licensed the products and now sought further funding in order to move forward in commercializing them.
At this event, I had surrendered my science and law hats in favor of my MassChallenge hat, so I focused my questions on her experience as an entrepreneur, and what skills and resources one needed for success. One of her very first recommendations involved finding an excellent attorney to represent the enterprise. As a young attorney undercover, I pressed for more information. Indeed, this conversation presented itself as my opportunity to discover what entrepreneur clients really want from their attorneys, but may be afraid to ask.
This entrepreneur suggested that new businesses should demand representation on a contingency basis, because most Founders do not have the necessary capital on hand. The attorney should be willing to provide these contingency services up to at least $10,000 and hopefully much more. In this case, for example, $10,000 would have failed to bring the business past the introductory licensing negotiations for the product. In addition, other legal concerns including potential incorporation, domestic and international intellectual property, and employment may face entrepreneurs early in the venture.
An attorney serving entrepreneurs should also provide quality and useful networks to their clients. If the attorney stands well-connected in the venture capital arena, for example, that may pave the road to obtaining capital more efficiently. An attorney well-connected in the legal community will be able to recommend or query other attorneys when a question outside his or her expertise arises.
Finally, the ideal attorney should strive to be available to his or her entrepreneur clients. The reality of starting a new business involves substantial overtime work and continuous surfacing of new, challenging issues. If such an issue falls into the legal category, and it’s 11pm, the entrepreneur may not have until the next day to meet a deadline. Without an available attorney, the entrepreneur client may experience unnecessary stalls in progress towards building the business.
When the bell rang for Unpanel participants to switch tables, I revealed to my new entrepreneur friend that I was an attorney. Her response: Spread the good word.
By Amy Tindell. Amy is a fellow at MassChallenge with a B.A. in Cognitive Science from Dartmouth College. A PhD in Neuroscience and a J.D. in Intellectual Property from Boston College.
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