I represent a lot of startups. Over the last few months I’ve seen three types of mistakes that they make in early funding rounds that they could easily avoid.

Representing startups is a lot of fun. Entrepreneurs have a great energy about them- they want to get things done and they are often blazing new trails. Their enthusiasm is contagious, but sometimes in their haste, they do things that a mature company would avoid.

I’ve seen these mistakes when helping these companies raise money, but these are mistakes they we all make from time to time.

1. Leaving things until later- My client raised $100,000 from one investor in 2012. In 2013 they raised another $100,000 from the same investor. In the 2012 they neglected to draft and sign a share purchase agreement. In 2013, the investor demanded rights on the shares he purchased in 2012. Under the Golden Rule (not to be confused with Maimonides’ Golden Mean), that is, he who has the gold makes the rules, the company had to give the investor any rights that he demanded. Had they signed an agreement after the 2012 round, the investor would likely never have asked for new rights on his shares purchased in 2012.

2. Overdoing “Do it Yourself”- Entrepreneurs love to do things themselves to save money. Unlike established companies, they can’t spend their precious cash hiring experts and consultants to do things professionally. And, I like to help my clients save money. If there are things they can do themselves, I tell them. Sometimes, that has unintended consequences.

To wit- my client filed to incorporate in New Jersey. Attorneys handle this, but really anyone can do it on the State’s website. However, since my client isn’t an attorney she forgot to save/download (or misplaced) the documents she should have received from the website. When she needed those documents she called me. In this case I was able to locate the documents and it took so little time that I didn’t charge her. Next time, she may have a problem that takes longer and the savings that she received from doing it herself will be paid (plus) in legal fees.