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Should you use an investor’s lawyer?

We’re a startup based in Palo Alto, and we just received a Series A term sheet for a $725,000 investment. The investor is basically insisting we use his lawyer at a big Valley firm to represent us. He said he doesn’t need a lawyer, and this will save us a lot of money. We’re first time entrepreneurs, and we don’t know if this is standard practice and what we should do. Any advice would be appreciated.

Answer: Welcome to the world of the Silicon Valley! This is not uncommon, but I still cringe when I hear it (probably because I was trained at two big law firms in New York City and this kind of stuff typically doesn’t happen there).

Scott Edward Walker

Full Story: http://venturebeat.com/2011/08/29/should-you-use-an-investors-lawyer/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+Venturebeat+%28VentureBeat%29

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