The pitfalls of issuing convertible instruments through an LLC

From employment agreements to NDAs, startups need to secure their ideas, technology, and brand assets. This guide covers key legal tools that safeguard intellectual...

Finance
March 12, 2025
3 Min Read
Juan Pablo Cappello
The pitfalls of issuing convertible instruments through an LLC

Fundraise with confidence. Stay compliant with ease. Grow your business.

Raising capital and managing legal formalities have long been the Achilles’ heel of startups. Founders don’t launch companies to drown in cap tables, legal documents, and investor spreadsheets. They want to build. But the reality? Fundraising isn’t just time-consuming—it’s exhausting. But what if you had an AI-powered co-pilot to take on the heavy lifting

How often have you heard a founder sigh, “I just want to focus on my business, but fundraising is a full-time job”?

Enter Grow: a game-changing platform that brings together the best of automation, legal expertise, and intelligent investor outreach. Think of Grow as your startup’s fundraising and legal co-pilot— created by PAG Law and backed by respected companies like Flowlie, Clerky and Mercury—so you can raise capital and stay compliant without missing a beat.

The Broken System: Expensive, Time-Consuming Fundraising

Raising capital feels like a full-time job—except no one trains you for it. Founders spend months hunting for investors, wrestling with legal paperwork, and struggling to open bank accounts. The result? Delays, missed opportunities, and wasted time.

At PAG Law, we’ve seen it happen too often: founders overwhelmed by the fundraising process, scrambling to keep up with investor outreach, legal paperwork, and compliance. Important details slip through the cracks—not because founders lack vision, but because the system is too fragmented, too expensive, and riddled with avoidable pitfalls.

How much time have you already lost to fundraising? How much more time can you afford to waste?

We built Grow to fix this mess—because founders deserve better.

The Grow Advantage: Integrated Fundraising & Legal Support

1. Find the Right Investors—Faster

In partnership with our friends at Flowlie, Grow provides automated investor outreach and real- time insights. Instead of wasting weeks manually researching VCs, founders can instantly generate tailored investor lists and track engagement seamlessly. Plus, Flowlie and Grow offer exclusive concierge services to streamline the fundraising process.

2. Affordable, Automated Legal Setup

Shortly Grow will integrate Clerky’s world-class automated legal tools, providing vetted startup agreements, incorporation tools, and compliance resources. No more spending tens of thousands of dollars on routine legal work—Grow today provides US lawyer-approved legal documents at a no additional cost.

3. Real Legal Help, Without the Runaway Costs

Unlike cookie-cutter solutions, Grow doesn’t leave you hanging when real legal issues arise. Powered by PAG Law, a top-tier venture law firm, Grow offers dedicated paralegal support and access to experienced attorneys—so you can get human guidance when needed, without runaway legal bills.

How Grow Transforms Fundraising

Before Grow founders who are fundraising had to:

• Spend weeks searching for investors on LinkedIn, PitchBook and Crunchbase.

• Pay thousands of dollars in legal fees for incorporation and investment agreements.

• Manually track investor outreach and follow-ups.

• Struggle to open a U.S. bank account from abroad.

With Grow companies raising capital and closing venture rounds can:

• Use Flowlie’s tools to generate a curated investor list instantly with exclusive concierge support.

• Access PAG Law’s curated legal agreements and soon have access to a Clerky integration.

• Leverage Grow’s cap table and compliance tools to simplify due diligence.

• Open a bank account through Mercury hassle-free (and even get up to a $1,500 rebate).

The result? A faster, smoother, and dramatically more efficient fundraising process.

The Future: Grow+, Law-as-a-Service (LaaS)

Grow isn’t just a tool—it’s a revolution in how legal and fundraising services are delivered. By combining automation with expert support, we’re turning legal headaches into a seamless, scalable service.

At PAG Law, we will soon launch Grow+: while Grow is designed to streamline early-stage fundraising and legal setup, Grow+ will provide founders of all types ongoing, comprehensive legal support at a fixed monthly cost—so startups never have to worry about runaway legal bills again.

With Grow+, we are creating a LaaS (Law-as-a-Service) platform, with three tiers of legal support—each for a fixed monthly fee. We don’t want to spoil the surprise so we’ll reveal more about Grow+ soon—stay tuned….

If you’re a founder looking to simplify fundraising and legal compliance, it’s time to try Grow. Let’s change the way startups scale—so you can focus on what really matters: building your business.

Be one of the first 100 founders to get Grow for just $99/month. Start simplifying fundraising today at www.buildwithgrow.com. “It’s time to Grow”

(Disclaimer: Grow is a software platform designed to assist with fundraising and legal automation. It is not a substitute for personalized legal advice. Using Grow does not establish an attorney-client relationship with PAG Law. Legal support from PAG Law is only provided through a separate engagement letter . More at www.pag.law)

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FAQs

1. What is Grow exactly?

Grow is a legal-first platform that helps startups incorporate and stay investor-ready. We offer incorporation and ongoing legal support — all in one place, backed by licensed professionals.

2. Is Grow the same as Pag Law?

Grow is a spin-off of Pag Law. Backed by their legal expertise and compliance standards, we created a solution tailored specifically for early-stage startups. You get exactly what you need for your stage — no more, no less — with real, U.S.-licensed attorneys behind every step.

3. How is Grow different from other platforms?

We’re not just a software layer. Grow operates under a U.S.-compliant legal structure, which means your filings and support come from real attorneys — not automated templates or bots.

4. Is Grow only for U.S. founders?

Not at all. Most of our clients are international founders launching or expanding into the U.S. We specialize in helping non-resident founders navigate U.S. legal compliance with confidence.

5. Can I use Grow if I already incorporated my company?

Yes. We can help review and clean up your existing structure, and take over your ongoing legal needs — especially if you’re preparing to raise or scale.

6. Do you offer one-time help or ongoing support?

Both. We support one-off legal requests (like fundraising docs or equity grants), and also offer ongoing support to keep your company legally structured and compliant as you grow.

7. How much does Grow cost?

We offer flat, transparent pricing designed for early-stage startups. No billable hours, no hidden fees — just clear packages based on your needs.

Questions? Let’s talk

Book a complimentary consultation today and see how we can support your business from formation to fundraising and beyond.

Fundraising Shouldn’t Slow You Down
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