Should I pay my lawyer a success fee for venture capital intros?

The following is from Ask The VC, where Brad Feld and Jason Mendelson of Foundry Group answer questions related to venture capital investment and startups: Q: My lawyer is asking for a "success fee" for a referral to a potential investor in my business. Since he'll be doing the legal work, he's offered to charge only 3% on the amount funded (solely from this one contact) as opposed to a 5% that a typical investment banker would charge (even though he's not an investment banker himself). As this is the first venture I'm actually raising capital for, I am simply unfamiliar with this practice in the legal world. Is this a common industry-wide practice? Should I be wary of this offer? Although I don't feel like he is trying to take advantage of me in any way, it does feel a bit like he's trying to double-dip. A: (Jason) Without... [read full story]