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Startup founders often make these legal mistakes


Early-stage founders face many challenges. Some of the trickiest and most foreign are legal because the legal world is unfamiliar and ever changing.

A partner at Grellas Shah, David Siegel is an accomplished startup lawyer and litigator who has extensive experience in handling a broad range of corporate, transactional, and intellectual property matters, including work on multi-million-dollar financings and acquisitions. In imprecise language, founders discuss issues around equity, other compensation, and roles and they make promises to each other and early employees before relationships are documented. That earlier vague promise could potentially be considered a binding contract with unsettled terms, leaving a cloud on the company’s capitalization that can be hard to clear without litigation.

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