E136: Navigating Startup and Venture Capital Legal Risks w/Constantine Karides

In this episode of How I Invest, I interview Constantine Karides, a Lead Partner at Reed Smith, to discuss the critical role lawyers play in the startup and venture capital ecosystem. Constantine shares insights on what founders and investors should look for in legal counsel, the leverage model law firms use, and how AI is reshaping the legal landscape. From the importance of choosing the right law firm to navigating legal costs effectively, this episode is packed with actionable advice for entrepreneurs, venture capitalists, and investors. Highlights: Choosing a Lawyer as a Strategic Partner: Beyond paperwork, founders should seek legal advisors who bring investor connections, industry expertise, and pricing flexibility. The Importance of Internal Influence: How a lawyer’s standing within a firm impacts their ability to secure favorable terms and resources for clients. VCs & Legal Counsel: What venture capital funds should prioritize when selecting legal partners and how these relationships can create long-term value. Law Firm Profit Models: Understanding the leverage model law firms use to maximize profits and how clients can navigate these dynamics. AI & The Future of Law: How artificial intelligence is transforming the legal industry, from document review to litigation strategy. Building Long-Term Client Relationships: Constantine’s philosophy on blending business with personal relationships to drive success. Lessons from Experience: Mistakes Constantine made early in his career and how they shaped his approach to law and business. -- Guest Bio: Constantine Karides is a Lead Partner at Reed Smith, a global law firm known for its expertise in venture capital, private equity, and corporate transactions. With over 30 years of experience, Constantine has built a reputation as a trusted advisor to startups, funds, and investors, offering not just legal counsel but also strategic business insights. Recognized as a "rainmaker" at Reed Smith, he emphasizes client relationships, networking, and long-term value creation. Our Podcast now receives more than 200,000 downloads a month. Are you interested in sponsoring an episode? Please email David Weisburd at dweisburd@gmail.com . We’d like to thank @ReedSmith for sponsoring this episode! #VentureCapital #VC #Startups #OpenLP #AssetManagement -- SPONSOR: Reed Smith is a dynamic international law firm dedicated to helping clients move their businesses forward. With an inclusive culture and innovative mindset, Reed Smith delivers smarter, more creative legal services that drive better outcomes for their clients. Their deep industry knowledge, long-standing relationships and collaborative structure make them the go-to partner for complex disputes, transactions, and regulatory matters. Learn more at www.reedsmith.com . -- Stay Connected: Twitter: David Weisburd: @dweisburd LinkedIn: David Weisburd: https://www.linkedin.com/in/dweisburd/ Constantine Karides: https://www.linkedin.com/in/constantine-karides/ Links Reed Smith: www.reedsmith.com Questions or topics you want us to discuss on How I Invest? Email us at dweisburd@gmail.com . (0:00) Episode preview (2:08) Law firms' internal credibility and Venture Capital specific needs (5:29) Evaluating Startups and the leverage model in law firms (9:57) Trust-building and client relationship philosophy (14:41) Early career lessons and the impact of AI on the legal field (19:00) Client views on AI adoption in law firms (21:03) Closing remarks