Case Study: How a Startup Saved 70% in Legal Costs and Reduced Contract Risks

A US-based startup successfully secured a Canadian investor by utilizing our contract-focused legal support, saving 70% in legal costs while ensuring cross-border compliance—all without the need for a costly retainer or in-house legal team.

Overview:

When raising funds from international investors, startups often struggle with finding affordable, expert legal guidance. This case highlights how we acted as an accessible, flexible solution, enabling the startup to finalize its shareholder and operating agreements confidently and cost-effectively.

Problem faced:

Our client, a newly incorporated US-based startup in the process of securing funds from a Canadian high-net-worth individual (HNI), faced the following challenges:

1. Cross-Border Legal Complexity

   Finalizing the investment terms required reviewing the shareholder and operating agreements to ensure compliance on both sides. Given the cross-border nature of the transaction, each document had to be carefully tailored to protect the startup’s interests and address the legal requirements of both the US and Canada.

2. Need for Specialized Legal Support without High Costs

   Hiring a traditional law firm or in-house attorney for this process would have created an unmanageable expense for the startup. They needed experienced contract support, but without committing to the costs of full-time counsel or a retainer.

3. Required Redrafting and Negotiation Guidance

   The founder knew that, beyond reviewing documents, the agreements would likely require redrafting and minor negotiations. Lacking in-depth legal knowledge, they needed a partner who could advise on necessary negotiations and translate these changes into final, investor-ready agreements.

   Our Solution

   We provided targeted, on-demand support that aligned with their goals:

   1. Step 1: Expert Review of Shareholder and Operating Agreements

      After reviewing the existing agreements, we identified critical clauses that needed amendments to protect the startup's position, especially in terms of ownership structure, rights, and obligations. By carefully assessing the documents, we addressed potential risks that could have had long-term impacts on the business.

   2. Step 2: Strategic Negotiation Suggestions

      We proposed key negotiation points for the founder to discuss with the investor, aligning terms to better reflect the startup’s objectives and safeguard their future growth. This provided the client with a structured negotiation roadmap, allowing for effective and confident discussions with the investor.

   3. Step 3: Final Redrafting for Cross-Border Compliance

      Once the negotiations were complete, we redrafted both agreements, incorporating the agreed-upon terms and ensuring the language was precise and compliant. This provided the startup with legally sound, investor-ready agreements that reduced their legal risks without inflating their budget.

      Saved Over 70% in Legal Costs

      By avoiding the costs of traditional law firms or a retainer, the startup reduced its expenses significantly, saving funds they could reinvest in growth and operations.

      Secured Cross-Border Investor Confidence

      With expertly drafted agreements, the startup presented documents that demonstrated professionalism and due diligence, solidifying trust with the Canadian investor.

      Enabled Focus on Core Operations

      Our on-demand model allowed the founder to focus on scaling the business while we handled the complex legal aspects, ensuring agreements were finalized efficiently and accurately.

      Recap: How Our On-Demand Solution Can Benefit Startups Like Yours

      Our approach can support your startup by providing:

      1. No Retainer Required: Access legal expertise as needed, without the burden of long-term contracts.

      2. Cross-Border Legal Compliance: Navigate complex, international agreements confidently.

      3. Cost Savings: Reduce legal costs by up to 70%, compared to traditional firms or full-time in-house counsel.

      This flexible, project-based model delivers essential contract support while keeping costs manageable for startups.