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, and how does it help founders?  

Grow is an all-in-one platform designed to help founders streamline fundraising, legal compliance, and business growth. Built by the experts at PAG Law, Grow gives you access to Flowlie’s powerful fundraising tools, vetted legal templates, and guidance from experienced startup attorneys—so you can save time and focus on scaling your company.  

2. What’s included in my Grow subscription?

Your subscription includes access to Flowlie’s investor research and fundraising tools, essential legal templates, business compliance resources, and guidance from PAG Law’s legal team. It’s a one-stop platform designed to support founders at every stage of their fundraising and growth journey.

3. How does Flowlie help with fundraising?

Flowlie simplifies fundraising by automating investor targeting, outreach, and due diligence tracking, helping you connect with the right investors faster. Instead of spending hundreds of hours on manual research, Grow provides you with an investor pipeline, strategy insights, and real-time updates on your fundraising progress.

4. Do I still need a lawyer if I use Grow?

Grow provides access to PAG Law’s vetted legal templates and resources, but it is not a full replacement for legal counsel. For complex legal matters, you can connect with PAG’s legal team or your preferred attorney for additional support.

5. What kind of legal resources are available on Grow?

Grow includes a library of essential legal templates such as NDAs, employment agreements, investor agreements, and compliance checklists—all designed and reviewed by experienced startup lawyers to help you avoid costly legal mistakes.

6. Is there a long-term commitment for Grow?

No, Grow operates on a month-to-month subscription model, so you can cancel anytime. Our goal is to provide ongoing value, ensuring that founders have access to the tools they need without unnecessary commitments.  

7. How much does Grow cost?

Grow is available for $99 per month, giving you access to Flowlie’s investor tools, essential legal templates, and compliance support—at a fraction of what you’d typically spend on legal and fundraising services.

8. Who is Grow best suited for?

Grow is designed for early-stage and scaling founders who want to simplify fundraising, legal compliance, and business operations. Whether you're preparing for your first funding round or optimizing your legal strategy, Grow provides the essential tools to keep you moving forward.

Questions? Let’s talk

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

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