The answer to this what appears to be a rhetorical question, seems obvious.
You really need to be having ALL of these conversations with your attorney(s).
IF you are not comfortable doing so, you may not be ready for business AND almost
assuredly should not be entering into any agreements with these attorneys.
I agree with the comments made by my colleagues and would only add that the law firm would need to be very careful to avoid creating a conflict of interest. By endorsing your company to a network of investors places them in a potentially precarious position. I for one would not enter into such an arrangement. Certainly no one should without a firm written understanding of the relationship between and expectations of the parties.
Neil Michael PopowitzLand Use / Zoning AttorneyLos Angeles, CA ·
Like my colleagues, my first reaction to this question, before I even read the responses, is that your hypothetical is something out of a law school ethics class. Obviously, it would be in the attorneys' best interest to help find you an investor, and therein lies the concern. While helping find an investor could be considered a confluence of interests, i.e., the attorney and the client both are benefited, the attorneys are supposed to be working in the client's best interest, not their own. Who chooses which investor to go with?Many attorneys work with startup companies in exchange for stock or deferred fees, especially in the Internet or software sphere, but it must be done carefully and the client must be fully informed of the potential conflicts of interest.