208-596-6500 | PROBLEM #2
High legal fees present a huge obstacle to any entrepreneur attempting to raise capital the U.S. In the Summer 2009 edition of Yes! Magazine, Michael Shuman of BALLE notes it can cost $50,000 to $100,000 or more in legal fees to prepare legally compliant securities offering documents for raising seed and early round capital.
SOLUTION #2
EcoSector helps reduce and even eliminate these fees in several ways:
- High legal fees can often result from an entrepreneur paying a securities lawyer to do non-legal work such as strategic planning, earnings projections, and drafting legally compliant business plans. This happens when an entrepreneur retains a securities attorney before their basic business documentation and capital strategy are in place. EcoSector helps green entrepreneurs seeking capital get properly prepared for their securities attorney, eliminating unnecessary legal fees.
- Different securities attorneys can charge widely varying fees for identical work products. Most securities attorneys prefer working with huge clients who can pay huge fees and shy away from first round entrepreneurs. Over several years, EcoSector has developed relationships with securities attorneys who prefer to work with early stage companies, and who have clear, fixed price fee structures. By choosing the correct attorney, it is possible for an entrepreneur to complete the work Shuman mentions for $5000 to $15,000. EcoSector’s attorney associates can also help entrepreneur raise these fees in a legally compliant way, effectively bringing the out-of-pocket cost to the entrepreneur to zero for a signficant capital raise.
- EcoSector Industry Association members can help green entrepreneurs defray legal costs by making additional gifts to qualified green entrepreneurs in increments of as little as $1.00. Learn more about becoming an EIA member…
Tags: BALLE, green investing, seed capital
