I work with quite a lot of start-ups in my current main job as a lawyer. As a result, I often get asked for help from friends and sometimes volunteer it. Recently, I was asked if I would be willing to offer a few hours of help per week (the company is post seed, pre-A)....<p>I really like the idea and the people and am keen to learn more about their activities, but I also work long hours and would basically be saving them quite a bit in legal or other advisory fees....<p>I have some thoughts and am happy to share, but first I'm curious to see what people think? Pros and cons of giving this help? Should I be expecting/demanding options or other compensation? Any experiences of this kind of thing ending well/badly?
What do you want to achieve?<p>(1) Learn more about the startup world
(2) Help out some startups
(3) Business development for new clients when they raise $ and can afford you.<p>The answer will depend on which one you're aiming for. My guess is that -- depending on how early the startups you're working with would be -- technical founders would end up looking to you as advisor on topics like negotiation, business development, and fundraising, rather than strictly legal advice. Generally after you help a startup 2-3 times they should give you some equity as an advisor.
A startup is a business, not a charity. Don't kid yourself that freebies are <i>pro bono</i> in any sense whatsoever. To put it another way, giving these people free legal advice makes as much sense as them just giving you stock based on friendly feeling.<p>Charge your regular rate or don't do it. You don't need clients who don't value your time enough to write you a check. And you damn sure don't want them to tell all their friends or that big future project that also doesn't pay.
Work with professionals.<p>Good luck.
One possible solution would be if you genuinely enjoy offering advice to startups, you could always look at it as a hobby. Honestly, I'm not sure someone with a conscience would be okay asking for help without at least offering something/anything (money, golf, beer, w/e). Everyone needs help at one point or another, and you may want to work or volunteer with people who value your contributions.
Startups typically compensate in equity and/or some deferred payment contingent on the next round when they ask attorney's for services that can't be paid for in cash immediately.