Commissions demanded on funding we never received
Nearly €10,000 for what we estimate was about 20 hours of legal work, and a stressful exit process.
As an early-stage startup, we engaged this firm in 2024 under a "success-based" arrangement presented as founder-friendly risk-sharing. The work delivered over roughly 20 months (contract reviews, employment agreements, some corporate advice) amounted, by our own detailed estimate, to around 20 hours. We were never provided itemised timesheets.
After a while we simply didn't need many legal services anymore, and the open-ended success-fee arrangement no longer made economic sense for either side. So we approached the firm openly to terminate the engagement letter and settle fairly for the work actually delivered.
To be fair: the firm supported us at a stage when we couldn't pay regular fees, and we always accepted they deserved compensation above standard rates for taking that risk. Other Portuguese law firms quoted us around €120/hour for comparable work, which would value the roughly 20 hours at about €2,400. Recognising the risk they had taken, we offered €6,000, two and a half times that market value. A generous risk premium was always part of our proposal. What we ended up paying, roughly €500 per hour of work delivered, goes far beyond any fair premium.
That's when the real problems started. The firm claimed commissions calculated on funding amounts that were merely approved on paper, including project financing we had never actually received, even though the contract wording referred to investment amounts received. Over just three weeks, we were presented four different amounts: a "reference" figure of over €41,000, then a settlement demand of €10,000 + VAT, then a recalculation of €9,938, and finally a formal invoice of €8,438 + VAT, payable within 5 days and expressly NOT constituting a full and final settlement, with all further rights reserved. In a meeting, a figure of €25,000 was also raised. In our view, these constantly shifting numbers were used to pressure us into accepting an invoice we disputed.
To avoid a drawn-out fight that a young company cannot afford, we ultimately settled and paid close to €10,000 in total.
Our experience: unpredictable pricing, commissions claimed on money we never received, no transparency on hours, and heavy pressure when we tried to leave. We cannot recommend this firm to startups. If you do engage them, get every fee term capped and itemised in writing first. However, to be fair, the service they provided was good quality.
26 juni 2026
Review zonder uitnodiging