from Hacker News

Free Hours to a Startup

by jseeff on 8/4/15, 8:19 PM with 13 comments

I work with quite a lot of start-ups in my current main job as a lawyer. As a result, I often get asked for help from friends and sometimes volunteer it. Recently, I was asked if I would be willing to offer a few hours of help per week (the company is post seed, pre-A)....

I really like the idea and the people and am keen to learn more about their activities, but I also work long hours and would basically be saving them quite a bit in legal or other advisory fees....

I have some thoughts and am happy to share, but first I'm curious to see what people think? Pros and cons of giving this help? Should I be expecting/demanding options or other compensation? Any experiences of this kind of thing ending well/badly?

  • by calcsam on 8/4/15, 8:25 PM

    What do you want to achieve?

    (1) Learn more about the startup world (2) Help out some startups (3) Business development for new clients when they raise $ and can afford you.

    The answer will depend on which one you're aiming for. My guess is that -- depending on how early the startups you're working with would be -- technical founders would end up looking to you as advisor on topics like negotiation, business development, and fundraising, rather than strictly legal advice. Generally after you help a startup 2-3 times they should give you some equity as an advisor.

  • by brudgers on 8/5/15, 12:52 AM

    A startup is a business, not a charity. Don't kid yourself that freebies are pro bono in any sense whatsoever. To put it another way, giving these people free legal advice makes as much sense as them just giving you stock based on friendly feeling.

    Charge your regular rate or don't do it. You don't need clients who don't value your time enough to write you a check. And you damn sure don't want them to tell all their friends or that big future project that also doesn't pay. Work with professionals.

    Good luck.

  • by workerdee on 8/5/15, 7:15 PM

    One possible solution would be if you genuinely enjoy offering advice to startups, you could always look at it as a hobby. Honestly, I'm not sure someone with a conscience would be okay asking for help without at least offering something/anything (money, golf, beer, w/e). Everyone needs help at one point or another, and you may want to work or volunteer with people who value your contributions.

  • by vonnik on 8/4/15, 8:34 PM

    Startups typically compensate in equity and/or some deferred payment contingent on the next round when they ask attorney's for services that can't be paid for in cash immediately.