The New Accelerator Program From Equity LLP Wants To Help Startups Get Their Legal Affairs In Order


I know, sometimes it feels like every day we learn about a new startup accelerator or startup incubator. But this newest program put together by San Francisco-based law firm Equity LLP really seems to bring something different and useful to the table — hands-on help with all the legal documents and affairs that most new companies really need, but often don’t have the resources to tackle. Equity says that the program’s goal is to produce “fundable” companies “that will sail through due diligence with a clean cap table, solid organization, and good contracts.”

In exchange for a place in the three-month incubator program, Equity LLP will take a 2 percent or so stake in each company (for comparison, Y Combinator takes a stake of between two and ten percent in its portfolio companies.) Equity, which is set to launch its accelerator on February 4th with 10 to 20 startups (applications are still open now), also operates as a law firm aimed at startups that similarly gives its clients the option to pay with equity rather than in traditional billable hours.

It’s all a pretty interesting strategy, so we invited Equity’s chief evangelist Andrea Lamari to come by TechCrunch TV and discuss the firm and its plans for the new accelerator. Watch the video embedded above to hear about why Equity takes the risk of being paid in equity versus straight cash, how startups who have been through accelerator programs before can benefit from the program, the biggest legal mistake founders often make, and more.