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𝐔𝐧𝐰𝐫𝐢𝐭𝐭𝐞𝐧 𝐑𝐮𝐥𝐞𝐬 𝐂𝐚𝐧 𝐋𝐞𝐚𝐝 𝐭𝐨 𝐁𝐢𝐠 𝐏𝐫𝐨𝐛𝐥𝐞𝐦𝐬: 𝐓𝐡𝐞 𝐏𝐨𝐰𝐞𝐫 𝐨𝐟 𝐚 𝐒𝐡𝐚𝐫𝐞𝐡𝐨𝐥𝐝𝐞𝐫 𝐀𝐠𝐫𝐞𝐞𝐦𝐞𝐧𝐭 𝐟𝐨𝐫 𝐒𝐭𝐚𝐫𝐭𝐮𝐩𝐬 A shareholders’ agreement is a vital document for any startup. It protects both founders and investors and helps in managing the company efficiently. 𝐇𝐞𝐫𝐞’𝐬 𝐰𝐡𝐲 𝐢𝐭’𝐬 𝐜𝐫𝐮𝐜𝐢𝐚𝐥: 𝐏𝐫𝐨𝐭𝐞𝐜𝐭𝐢𝐧𝐠 𝐅𝐨𝐮𝐧𝐝𝐞𝐫𝐬 𝐚𝐧𝐝 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬: A shareholders’ agreement outlines the rights and obligations of each party. This clarity reduces the risk of disputes and ensures everyone is on the same page. It’s a safeguard for both founders and investors, providing legal protection and peace of mind. 𝐌𝐚𝐧𝐚𝐠𝐢𝐧𝐠 𝐑𝐞𝐥𝐚𝐭𝐢𝐨𝐧𝐬𝐡𝐢𝐩𝐬 𝐚𝐧𝐝 𝐄𝐱𝐩𝐞𝐜𝐭𝐚𝐭𝐢𝐨𝐧𝐬: Startups often face challenges in managing relationships between founders and investors. A shareholders’ agreement helps by clearly defining roles, responsibilities, and expectations. It lays the groundwork for smooth operations and effective decision-making. 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫 𝐂𝐨𝐧𝐟𝐢𝐝𝐞𝐧𝐜𝐞: Having a shareholder agreement shows investors you're serious about building a sustainable business. It demonstrates professionalism and reduces their risk. 𝐁𝐞𝐧𝐞𝐟𝐢𝐭𝐬 𝐨𝐟 𝐚 𝐖𝐞𝐥𝐥-𝐃𝐫𝐚𝐟𝐭𝐞𝐝 𝐀𝐠𝐫𝐞𝐞𝐦𝐞𝐧𝐭: Having a well-drafted shareholders’ agreement from the start sets a solid foundation for your startup. It covers key areas such as: • 𝐕𝐨𝐭𝐢𝐧𝐠 𝐑𝐢𝐠𝐡𝐭𝐬: Who has the power to make decisions and how those decisions are made. • 𝐒𝐡𝐚𝐫𝐞 𝐓𝐫𝐚𝐧𝐬𝐟𝐞𝐫𝐬: Procedures for buying, selling, or transferring shares. • 𝐄𝐱𝐢𝐭 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐞𝐬: Planning for potential exits, whether voluntary or through external events. • 𝐃𝐢𝐯𝐢𝐝𝐞𝐧𝐝𝐬: How profits will be distributed among shareholders. Ensure your startup is protected from the beginning. Let’s work together to draft a comprehensive shareholders’ agreement that fits your unique requirements. 𝐑𝐞𝐚𝐝𝐲 𝐭𝐨 𝐝𝐢𝐬𝐜𝐮𝐬𝐬 𝐲𝐨𝐮𝐫 𝐬𝐩𝐞𝐜𝐢𝐟𝐢𝐜 𝐠𝐨𝐯𝐞𝐫𝐧𝐚𝐧𝐜𝐞 𝐧𝐞𝐞𝐝𝐬? Leave a comment below or send me a message - I'm happy to chat! #GlobalContractsExpert #InternationalLegalExpert #CrossBorderContracts #ShareholdersAgreement #Startups #LegalServices #BusinessGrowth #StartupSuccess #Governance 

Governance is relevant for startups throughout their growth, but its importance increases as they mature. Here's a brief breakdown: • Early Stage: While structure might be loose initially, establishing core values and ethical practices early on sets a strong foundation for future governance. • Growth Stage: As the company scales, governance becomes crucial for efficient decision-making, managing risk, and attracting investors who value transparency and accountability. • Later Stage: Strong governance structures are essential for large, established startups to navigate complex regulations, maintain investor confidence, and ensure long-term sustainability. Check out our recent enlightening webinar that unpacks challenges faced by business owners as they strive for strategies to turn survival into growth in the South African business environment. Watch here: https://lnkd.in/dja5RAz7 #BSO #StartUp #Funding #Business

🌱𝐃𝐫𝐢𝐯𝐢𝐧𝐠 𝐒𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐚𝐥 𝐚𝐧𝐝 𝐂𝐮𝐥𝐭𝐮𝐫𝐚𝐥 𝐓𝐫𝐚𝐧𝐬𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐟𝐨𝐫 𝐑𝐞𝐠𝐞𝐧𝐞𝐫𝐚𝐭𝐢𝐯𝐞 𝐂𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬    Two enlightening workshops punctuated last Monday with top-experts. 💫 Marie-Laure Berthie from Eolus Partners, a seasoned expert in advising #investment funds and family offices, shared invaluable insights on adapting fundraising processes for purpose-driven ventures. Drawing from her 20 years of experience advising SMEs and startups on strategic #capital structuring, she provided concrete tools and guidelines to empower our startups in their #fundraising journey. 💰   Complementary to this, Michel Jaccard led a compelling workshop on #governance and #financing aspects, emphasizing on the foundational changes needed within #impact companies. With a very rich experience as a #lawyer, founder of #BCorp certified id est avocats law firm and co-creator of the #ImpactTermSheet and other initiatives supporting companies and impact investors, he underscored that purpose-driven startups cannot merely implement additional layers but need deep shifts in both #structure and #culture, and prepare specifically for negotiations with impact investors and corporate players. Lively debates were sparked amongst our 20 startups embracing this transformative journey! 🗣️   In the realm of #regenerative economy, we are challenged to reimagine #business foundations and #legal frameworks. Proper #strategies and #processes are pivotal in shaping a sustainable ecosystem. We should keep in mind that “Culture eats Strategy for breakfast!”… 💡   #ImpactInvesting #PurposeDriven #RegenerativeEconomy #Fundraising #ImpactVentures #Innovation EPFL Innovation Park

Common Challenges faced by Start-Up Companies Start-up companies often face unique challenges and obstacles that can impact their success. Some common roadblocks include limited resources, lack of experience and expertise, difficulty in attracting talent and investors, difficulty in establishing a market presence, and regulatory compliance. To overcome these challenges, start-ups need to adopt a proactive approach and develop strategies to address these issues head-on. #StartupChallenges #ResourceConstrainst #ExpertiseShortage #TalentAcquisition #MarketEstablishment #RegulatoryCompliance

Discover the essential guide to term sheets and their significance in the commercial world. This article demystifies key components like valuation, equity stakes, and anti-dilution provisions, offering clear insights for founders, investors, and lawyers. Learn how term sheets set the stage for successful negotiations and align stakeholder interests. Whether you're new to the startup world or a seasoned pro, this article authored by Sanyam Aggarwal equips you with the knowledge to navigate investment deals confidently. Dive into the must-know aspects of term sheets and elevate your startup investment game.📈 #startup #termsheets #investment #corporate #legal

Authored by our associate, Mr. Sanyam Aggarwal, this article serves as a foundational guide to understanding term sheets, which are crucial in startup investment scenarios. It elucidates the term sheet's role as a non-binding yet influential document that shapes investment discussions and agreements. Essential for startups, investors, and legal professionals, the article explores key aspects such as valuation methods, equity stakes, and legal clauses with practical implications. Understanding these elements ensures stakeholders are well-prepared to negotiate and formalize their investment deals effectively. Read the full article here: https://lnkd.in/g3r-2hyV #MetalegalAdvocates #MetalegalInsights #StartupInvestments #TermSheets #StartupFunding #InvestmentStrategies #VentureCapital #LegalInsights

𝐓𝐡𝐫𝐞𝐞 𝐩𝐢𝐥𝐥𝐚𝐫𝐬 𝐟𝐨𝐫 𝐬𝐮𝐜𝐜𝐞𝐬𝐬𝐟𝐮𝐥 𝐜𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐞 𝐯𝐞𝐧𝐭𝐮𝐫𝐞 𝐠𝐨𝐯𝐞𝐫𝐧𝐚𝐧𝐜𝐞 At WhatAVenture, we believe that a robust governance structure is the backbone of successful corporate ventures. Our latest blog post by Karyna Hornostai explains the three pillars you need to set up effective venture governance.  🤔 𝐏𝐢𝐥𝐥𝐚𝐫 𝟏: 𝐌𝐚𝐤𝐢𝐧𝐠 𝐭𝐡𝐞 𝐫𝐢𝐠𝐡𝐭 𝐝𝐞𝐜𝐢𝐬𝐢𝐨𝐧𝐬: Establish a well-structured decision-making body to navigate the complexities of venture building. Focus on strategic member selection, optimal board size, and a willingness to embrace calculated risks. 👨👩 𝐏𝐢𝐥𝐥𝐚𝐫 𝟐: 𝐆𝐞𝐭𝐭𝐢𝐧𝐠 𝐭𝐡𝐞 𝐫𝐢𝐠𝐡𝐭 𝐩𝐞𝐨𝐩𝐥𝐞 𝐨𝐧 𝐛𝐨𝐚𝐫𝐝: Attract top-tier entrepreneurs throughout the venture’s lifecycle, but not that the type of people you need will vary along the way. How you incentivize these people will also change. ➡️ 𝐏𝐢𝐥𝐥𝐚𝐫 𝟑: 𝐎𝐩𝐞𝐫𝐚𝐭𝐢𝐨𝐧𝐚𝐥𝐥𝐲 𝐝𝐫𝐢𝐯𝐢𝐧𝐠 𝐨𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐢𝐞𝐬: Leverage your organization's unique advantages—be it funding, networks, or expertise—to develop and grow your ventures. Read the full article to explore how you can implement these pillars and elevate your venture governance strategy. https://lnkd.in/d5YGuKFh #CorporateVentures #VentureGovernance #VentureBuilding #WhatAVenture

💪Development and Protection: Key Terms of Restriction Agreements in Venture Deals In IT venture deals, both the product and the founders, key persons, and other startup employees are of value to the investor. It’s hard to imagine a product succeeding and the business becoming successful without the involvement of its participants. 🔹 Nowadays, when competition among startups is high, there’s a growing trend for investors to be particularly attracted by strong teams. To maintain the stability of such a team after a deal, the investor, in addition to the main binding documents (share subscription agreement, shareholders' agreement), will insist on signing a restriction agreement. In this article by Nastassia Akulich and Alexandra Kovalyova, we’ll explore the essence of this document and the key terms it contains: https://lnkd.in/eQ4Z-eVa #it #business #itbusiness #venturedeals #MergersAndAcquisitions

Join Lowenstein Sandler LLP's Laura Cicirelli on February 20 for an enlightening discussion on angel investing. Gain valuable insights from experts in the field and explore the dynamic world of industry leaders. #startups #growthcompanies #emergingcompanies #venturecapital #techlaw 

Plenty of focus on the edge case start-ups. How about the mid-size firms? #startupscaleup #scaling https://lnkd.in/gdPnEFcP