Yes. You should always hire a lawyer to help you with a capital raise.
You don’t just need a lawyer, you need a lawyer who specializes in capital raising and has represented many similar types of deals. Transaction-focused lawyers know the ins and outs of raising capital and can make sure you are protected and get a fair deal.
If your current legal representation doesn’t specialize in these types of transactions, you need to seek new representation.
What Should a Good Lawyer Help You do?
A good lawyer will provide legal assistance throughout the capital raise process. Here’s a general overview of what they will help you do:
- Make sure your corporate legal documents are in good shape to share
- Draft a template non-disclosure agreement to send to investors
- Help you evaluate and negotiate term sheets
- Help you prepare and negotiate transaction documents and amendments to the corporate documents
- Provide advice on what terms are “market”
- Ensure regulatory compliance
- Potentially connect you with investors who could be interested in the deal