On a typical institutional investment how much should your venture expect to be paying in legal fees?
A) Zero, this is handled by the VC
B) $5,000 to $10,000
C) $20,000 or more
D) 50% of the amount you are raising

Question

Quizplus · Accepted Answer

Legal fees for a typical institutional investment can range from $20,000 or more depending on the complexity of the deal. While some VCs may cover some of these costs, it's not uncommon for the startup to cover a significant portion of the legal fees. Option A is incorrect because not all VCs cover legal fees, and Option B is often too low. Option D is incorrect as legal fees are not typically calculated as a percentage of the amount raised.

On a Typical Institutional Investment How Much Should Your Venture