Why I Send Every Founder I Work With To Goodwin
Get A General Counsel Who Works With Startups Often
When I work with a founder in the Mat Capital portfolio, I always set them up with Goodwin, a full stack law firm that support startups, after we sign the docs. Why? Because my contact at Goodwin, Dane Patterson, a Partner in the San Francisco office, is an incredible resource for founders.
(Below is a pic of Dane and some founders/investors at a Seedscout event I threw in SF last year.)
Most of the time when I meet a founder, they have no legal contact — or worse, they’re working with someone who isn’t fluent in tech. A lawyer who treats the startup like a regular small business, not a company built to reach hundreds of millions (or even billions) in revenue or die trying.
9 out of 10 times, these lawyers set up companies in nonstandard ways from how a tech startup is supposed to be structured. Maybe there’s no option pool. Maybe they weren’t incorporated in Delaware. Maybe an 83(b) wasn’t filed within 30 days. Everything that’s “nonstandard” makes you harder to work with once investors are interested. The more nonstandard your legal setup, the harder it is to operate as a startup.
This is why I’m so glad to be connected to Dane. Dane works in SF and solely works with high-growth startups. He knows how they’re supposed to be set up for the long haul and can spot a nonstandard legal setup from a mile away. This is why I set up my founders with Dane — because he can tell if their setup is up to Bay Area standards, and if not, he can help get them there. Can’t pay for it? If you’re in my portfolio, he defers fees until after you raise funding.
I have nothing against any lawyer, but if you’re trying to build a billion-dollar company, you want a lawyer who sees those types of companies often. That’s why I trust Dane with my portfolio. And I’m stoked to announce that Goodwin is sponsoring the Mat Capital Hangout House next week. Dane is actually flying in to hang with the founders, answer legal questions, and spend time with our other guests. I’m appreciative of Dane’s partnership with founders in my portfolio and excited to have him at the house next week!
If you’re aiming to build a really big tech company and plan to use capital to get there, make sure your legal team is used to working with clients like that — otherwise, you may regret it down the line. And if we ever work together via Mat Capital, I’d be stoked for the opportunity to introduce you to Dane :)