Startups are fast-growth companies that often use technology to transform a market. During all stages of the startup lifecycle, founders are likely to encounter a variety of legal issues. From inception, co-founders should have a shareholders agreement in place to set out how the business will be run. Many startups also attract top talent by setting up an employee share option plan. If you are looking to secure external investment to help fuel growth, you may – at various stages – consider raising funds from friends and family, angel investors, or from venture capital funds.
Know how much you want to raise and what you will use it for. Importantly, ensure that you protect your interests by drafting the appropriate legal documents such as a share subscription agreement and a term sheet.
In 2017, LegalVision launched a Startup Manual to assist founders and entrepreneurs launch and grow a successful startup. It is a comprehensive handbook for founders covering all stages of the startup lifecycle, the Startup Manual includes 10 case studies featuring Australia’s top VC fund partners and leading Australian startups.