Any insights on covering legal expenses for a first fund prior to closing the fund? Local VC estimates $50-60K for initial legal work all of which are recoupable from post-close admin fees. But are people just paying this out of pocket or what?
May 03, 2023
Legal fees can be an organizational expenses and paid by LPs. It can cost a lot more for legal work depending on the setup etc… You should only work with law firms that specialize in VC fund formations.