Randy Safford and Don Baker are veteran lawyers, but they're also veteran entrepreneurs, both in their law firm and in other ventures they have helped launch.
And that's why they, joined by their colleague, Matt Bower, have created a law firm focusing on technology entrepreneurs, including startups – offering to technologists services they may not even realize they need, but which can prevent major headaches later.
They also offer fixed-price products for startups, and are willing to consider a flexible fee arrangement, deferring some fees until a startup starts generating revenue, or even taking startup stock as part of the fee.
But it's those legal bumps in the road that startup managers may not foresee that they say they enjoy helping out with the most.
Baker and Safford recall one client, a company that developed unique software to help auto dealers keep accurate inventory. But they never thought to get contracts with their independent-contractor software developers, acknowledging that all the work and the software itself belonged to the company.
"That's copyrightable work, the software code, and if you don't have an agreement, and the person isn't an employee -- and in most startups they're not, because you don't want the overhead -- then the law says the developer owns the code," Safford said. "You can still fix that after the fact, if they'll sign it."
Added Baker: "If you don't get that right, you might not be able to get financing, because you can't prove to an investor that you own the intellectual property that your business is based on."
The firm also offers special startup legal products for fixed or deferred fees.
A $750 Entity Formation package includes articles of organization (for an LLC) or incorporation, operating agreement or bylaws, designation of successors, obtaining a tax identification number, a minute book of formation documents, confidentiality and intellectual property assignment agreements and more.
A fixed-fee Seed Funding package gets a startup ready for investors. Companies seeking $250,000 to $2 million get a term sheet describing the basic agreements of the investment, restated articles of incorporation or organization to include a new class of preferred stock, a more complex set of bylaws a subscription agreement to document the actual investment, forms to let investors to elect a board member representing their interests, and more.
The firm still has many of its original entrepreneurial clients, including the payment and ordering kiosk technology developers Nextep Systems.
"We helped them form the company, we invested in it and are still investors, and they're doing great," Safford said. "They're right in our sweet spot, because they have intellectual property, software IP, and they license it."
To learn how Safford & Baker can help your startup thrive, contact http://www.saffordbaker.com/writings/.