While educating myself I've seen that startup lawyers sometimes invest in angel or series A rounds. I was wondering what people thought of this. To me it seems a little disadvantageous as it means your lawyer's interests are now aligned with the other investors, instead of remaining independent. As a founder, would you be second guessing advice given to you by your lawyer after the event, or would you trust that the advice they give continues to be the best for the company, even if 'best for the company' sometimes needs to be divergent from the best interests of the investors?
Lawyers who enter into business dealings with their clients have a duty, re-iterated by the ABA Standing Committee on Ethics and Professional Responsibility in a July 2000 report specifically about this topic, to ensure that their clients are notified of potential conflicts and encouraged to seek independent counsel.<p>If you trust your lawyer, you should expect him to handle such circumstances appropriately; and you should be prepared to seek independent counsel when he advises you to do so.<p>If you don't trust your lawyer, you should find a different lawyer. A bad lawyer can cause lots of problems for you whether he has invested in your company or not.