India’s startup ecosystem is no doubt flourishing, and while entrepreneurs are focusing on scaling their businesses, many underestimate the role of legal frameworks. Having worked closely with law firms and professional services businesses, I’ve firsthand observed how law firms are more than just legal service providers to startups. They’re growth enablers, provided they position themselves strategically. 

Law firms have a lot of potential to be more than just “legal support”. From structuring investor-friendly agreements to helping a startup navigate through regulatory risks, there’s much more that a law firm can do. This is where strategic positioning comes in and exactly where marketers like us step in. 

Why do Startups overlook legal strategy? 

Startups acknowledge the nature of compliance, contracts, funding agreements and everything to do with legal advice, yet they delay engaging with legal counsel. WHY? 

One of the major reasons is that they perceive legal support as a cost, and not an investment. We’re living in a time where everybody wants rapid growth and fails to focus on long-term risk mitigation. Many times, law firms also often fail to communicate their business impact effectively. An epidemic I’d like to point out is the rise of contract templates readily available online, that further pushes startup founders to use those templates without understanding the repercussions of doing so! It’s easy, it’s free or comes at a lower cost so why not? 

This is where law firms need to reframe their entire messaging. Instead of offering “solutions”, highlighting business outcomes, how they can help startups secure better investments, valuation, protect their IP, help them scale ethically and compliantly would be more beneficial. 

I work at this intersection—helping law firms position their USP that resonates with startups. 

How can law firms position themselves? 

Law firms must shift their approach from that of transactional to something around the lines of a strategic partnership model, to be seen as indispensable comrades. Here are a few tactics firms can deploy- 

1. Speaking the language of an investor  

Nothing works better than speaking the language of an investor, the very entity that startup founders and entrepreneurs rely on for funding. Many law firms assume that a startup only needs a contract and nothing more—after all, that’s what they approached them for. But should law firms limit their advice to just what’s requested? Absolutely not. In fact, they must go beyond it.

Law firms should set out a narrative around –

• How it is important to set out deals that attract VCs and angel investors, 
• How businesses can ensure compliance with SEBI, FEMA, FDI regulations, local laws, and,
• How to prevent legal hindrances that could scare off the investors later. 

Positioning the firm as fundraising enablers through thought leadership content, investor-focused insights and success stories can also be an added advantage.  It’s things like these that will directly speak to startups and also bring down startup mishaps that primarily arise out of legal setbacks. 

2. Look beyond the fine print 

Many fintech, SaaS, edtech, health and e-commerce startups start expanding rapidly by ignoring sector-specific compliance risks until they realise it’s too late to begin with. Here are a few real examples of businesses that have suffered due to legal lapses.

• Bharatpe, even though it is still operational, faced a major controversy a few years ago due to corporate governance failures. The company’s former MD was accused of financial irregularities and mismanagement. This case highlighted the need for a strong internal compliance mechanism. 
• In 2022, the RBI prohibited Paytm Payments bank from onboarding new customers, citing repeated non-compliance with data storage and KYC regulations. At this point, Paytm faced regulatory scrutiny that impacted its business operations majorly! 
• Zilingo, a fashion-tech startup based out of Singapore, that had operations in India, collapsed because of alleged financial misreporting and governance failures. This company struggled a lot with compliance related to financial disclosures that led to investor distrust and ended up shutting down. 
• GoMechanic was an automobile service startup that itself admitted to have done financial misreporting, inflating revenues to attract investors. This obviously had to lead to a crisis where investors lost their confidence, forcing the startup to lay off its employees and seek emergency funding.
• Doodhwala, a milk delivery startup, shut down due to regulatory challenges in the dairy sector, licensing issues and operational inefficiencies. All of this impacted the startup’s ability to scale. 

While these are just five detailed examples, many other startups like Stayzilla (2017), Vauld (2022), Mahindra eMarket (2021), TinyOwl (2016), Zappfresh (2023), iStream(2013) and many more have suffered the consequences of not taking legal matters seriously.

As a law firm, you’d want to post about regulatory updates and think you’re helping startups, but with so much complexity around this very space, firms should create content that translates compliance into business impact, showcasing how proactive legal approaches fuel growth. 

3. Getting the Intellectual Property (IP) and Brand Protection messaging right 

IP is an afterthought for startups, until they’re at the other end—facing infringement issues. IP is a ticking time bomb for startups, it begins the moment the startup is incorporated. This is because there’s no sensitisation about the relevance of IP in the first place. The name, the length of it, its logo, its brand colors, domain name, product designs, algorithms, technology, content, trade secrets and even social media handles hold IP value. Yet, many startups ignore and fail to protect them early, leading to many disputes down the road. 

As a law firm instead of using- 

• “Register your trademark with us”, use something like “We protect the very foundation of your brand and innovation.”
• “We offer IP protection services”, say “Your ideas deserve more than just protection, they deserve a strategic advantage.”
• “We provide due diligence services”, state “We make sure investors see your business as a safe bet.” 

Firms must get the messaging right, and focus on creating case-studies, videos, content to show how IP protection is important and how it leads to higher company valuations, investor confidence, etc. 

Changing the narrative for law firms 

This is where my work comes in! Bridging the gap between law firms and the startup ecosystem through strategic content and branding. I understand that many law firms struggle to position themselves as business-first advisors, they’re unable to position their sector-specific experience, differentiate their services in such a crowded legal market like India. However, obstacles are meant to be overcome. 

Without dwelling into the internal nitty-gritty of market positioning, here are three tips for any firm/law practice to get a head start. These tips are not limited to just startups. One can employ these strategies easily.  

• Craft engaging thought leadership content that can position law firms as startup-friendly confidants. You don’t need to do much. Just speak the laws in their language and tone, they’d understand. 
• Build LinkedIn and social media strategies that attract startup founders and investors. Notice what problems startups face, talk about it, offer solutions, be innovative and present all of it in social media, very strategically. Use carousels, videos, podcasts, blogs, articles, whitepapers, and even reports to highlight all of it. 
• Develop campaigns that translate complex legal concepts into business-friendly conversations. Most startup founders are not lawyers, hence using difficult legal jargon won’t help. Break down tough concepts, turn them into stories that the founders resonate with. Case studies? Present important cases (only after concealing the confidential parts) by dissecting them and structuring them to form a story. Storytelling is the key, really! 

Position, Engage, Lead – The new legal imperative 

The future of legal services lies in strategic positioning. Law firms that adapt to the evolving landscape, engage with their businesses, eventually lead the talk! They also end up gaining high-growth clients, fostering trust in the startup space. For all those firms who get it right, you’ll be indispensable partners in the country’s next wave of entrepreneurial success. 

For those who don’t, there’s still time. Buckle up!