Law Firms Counseling Start-Ups Offer Deferred Payment Plans, Introductions
Several high-profile law firms counseling start-ups are offering deferred payment plans, fixed fees and some important venture capital connections.
The firms include Cooley Godward Kronish, Wilson Sonsini Goodrich & Rosati, DLA Piper and Venable, the Wall Street Journal (sub. req.) reports. In some cases, the firms are linking new companies to venture capitalists that are also clients.
Among the creative options noted in the story:
• Wilson Sonsini began offering flat fees to certain clients for the first time this year.
• DLA and Cooley offer both fixed fees and deferred payment plans to clients likely to get funding.
• Venable began a “Venture Services” program in July in which “good bet” clients can defer half of their fees for a year, subject to a cap. The amount owed is excused if the client doesn’t get funding.
• DLA has a division called Venture Pipeline in which promising start-ups are introduced to investors. The firm introduced 125 companies to investors in 2009, and 44 percent obtained funding.
