Won’t it be scary if people just start picking scalpels and attempt to cut open someone after reading up a surgery procedure from the Internet? It is equally terrifying when we see start-ups blatantly copy pasting an agreement and use it for their business.
Here are some reasons why you should refrain from doing this anymore:
- The agreements on the Internet are DRAFTS, which means they are the most generic, absolutely obvious and only consist of common legal clauses. Agreements for start-ups need to capture the essence of your business and need to evaluate your losses in entirety and consequently protect you from them.
- Lawyers will do more than just sharing a draft. A good start-up lawyer is trained to minutely inspect every aspect of your business. You should hire a lawyer not only for the document , but, also for her judgment. That is a skill you should actually pay for.
- You are not saving any money. Copy pasting from the Internet may appear cheaper initially, however, you need to comprehend what is being put at stake as well. For example, if you choose to use a draft of founders’ agreement from the internet which does not have a vesting provision, you will be bound to part with the entire equity even when the co-founder quits in 6 months of joining. That is the risk!
- Seeking legal advice for start-ups is not an option, it is mandatory. A good start-up lawyer can define and structure the core of your business right from the beginning, making your journey uncomplicated. If done right, it may ease your funding hurdles too.