Criteria for Selecting Web Startup Lawyers

Matt Heaton has pointed me to Giff Constable's effort to amass a list of good web startup lawyers.

I don't know, and cannot personally vouch for, any of the other lawyers listed so far for other markets. (There aren't many listed; presumably, this effort is just underway.) However, Giff supplies a five point criteria for selecting a lawyer that I think is excellent. 

 Here it is: 

• has a practice with several Web startups, and understands startup issues 
• keeps billable hours reasonable, respecting cash of clients 
• is both an excellent lawyer and communicator 
• does not lose sight of business needs when thinking through legal issues 
• truly cares about representing your business (without conflicts of interests with VCs or other) 

Bullets three and four are givens, and ought to be weighed when selecting any kind of lawyer. Bullets two and five are where Giff's criteria really add value. 

I am self-interested, of course, but here's my perspective: 

Large firms sometimes do not have the flexibility to discount fees or take substantial risks of nonpayment. This is not always true. In fact, other times, large firms are in a better position than a boutique to undertake a client with the fore-knowledge that the firm may someday have to write off a large receivable. Whether there is flexibility is a case-by-case assessment. 

Which brings me to the parenthetical in Giff's fifth point: if the law firm is amazingly flexible as to its fees, that could mean either (a) you are a recognized world-beater, or (b) there may be other loyalties or agendas in the mix that you should unscramble. 

For me, the sweet spot often seems to be a mix composed of reasonable rates; some upfront, modest, good-faith retainer; and some ability and willingness on the part of the lawyer to take some risk.