The Startup DealFrequently Asked Questions
We imagine you have some questions with a deal this good.
No. This deal is specially tailored for emerging company startups that are forming or have recently formed. It is meant for companies that have not yet raised money from angel or institutional investors and do not have regular revenue-generating operations. For a variety of reasons, we are selective about our clients and we turn down more requested representations than we accept.
This deal is designed to pick up all typical startup business law work, such as formation documents, corporate governance documents, stock incentive plan, restricted stock agreements, stock option agreements, nondisclosure agreements, employment and consulting agreements, as well as investor introductions and advice for funding and growth. It also typically includes an agreed upon amount of time per month for the unexpected matters that come up.
When we first meet with the startup to understand the company’s direction and legal needs, we mutually define the scope of what’s covered and the fixed monthly price. We understand the needs of a typical startup. However, if a startup needs work that is outside of the typical scope, such as negotiating a license deal or spinning off a technology from an existing company, we will discuss an appropriate fixed monthly fee with the startup as part of the defined scope.
No. Either the startup or AlphaTech Counsel can cancel at any time, effective at the end of that month.
Yes. Once the company is no longer “recently formed,” as can be evidenced by regular operational revenue, an institutional round term sheet, and the like, it will grow out of the Startup Deal. In most contexts, we expect that to occur within 3-12 months. If a company likes the monthly fixed fee model, we can structure a new one based on its stage and needs.
Today, we have a very special Almond Crusted Walleye. No, really, there is no catch. We like startups and we don’t want the cost of the legal stuff to get in the way of companies launching.
No. Our firm works with companies with scalable business models, from startup through sale of the company. However, consistent with this and to maintain our focus and limit conflicts, we do not represent individuals, investors, large public companies, service businesses, nonprofits, and the like.
The AlphaTech Edge
We represent emerging companies with scalable business models. That’s it. We do not represent individuals, nonprofits, service businesses, investors, multi-national conglomerates, etc. We have built and rely on automation and other technology tools that are focused on serving emerging companies.
Each of our professionals has many years of experience working with emerging companies. As our firm is so focused on representing emerging companies rather than trying to serve everyone, we often have more experience with emerging company issues than most legal professionals in the Midwest, regardless of firm size.
We understand what it is like to be an entrepreneur. That is why we always strive to provide our services in the most effective, timely, and efficient manner. We also limit the number of companies we work with so that we can be more responsive to the high demands of emerging companies.