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The Value of Legal Diligence in a Startup
The last thing an investor wants is to put a million dollars into the company and have it instantly manifest in a lawsuit by somebody that didn't have an ipd agreement. The, especially at the seed stage, part of this post terms legal diligence process is not adversarial. It is helping the company clean up mistakes that might have ben happened. Just because there are mistakes or something is wrong doesn't necessarily mean the investors are going to back out. That's part of the value you add of bringing on an institutional investor: You get less cowboy at that point.