When your company has reached a point where you want to attract investors, there are a few things to consider to create a strong negotiation position. In addition to the business rationale to invest in your venture, investors look for the type of structure and control that increases your chances of success.
In light of this, companies usually have the following needs (which is why we have packaged these services at a fixed price startup-offer):
- Build a strong foundation with a Shareholders Agreement - regulate your rights and obligations towards each other as shareholders/founders on topics as influence, dedication (with vesting), how to replace a non-performing shareholder, majority requirements for decisions, confidentiality and competition.
- Secure your control over the valuable assets to defend your valuation - Create a transfer agreement for intellectual property rights and technology whereby the founders and any key persons transfer their know-how, technology and intellectual property rights to your company. This is usually an absolute requirement from investors as the valuation of the company largely consists of the control of the technology and other value-creating assets.
- Take the lead over your investment round with a Term Sheet for the investment - the first step of the discussion with the investors. Be proactive and define your rationale for bringing on external investors and save time engaging with only those investors that are interested in the deal you want to make.
- Get a flying start in the negotiations over the investment with your draft of the Share Purchase Agreement - Draft your own agreement where the full and necessary requisites to be able to complete the investment are regulated.
- Facilitate the transaction with the necessary paperwork - Prepare for the New Issue and prepare the necessary documents for your board of directors. There are formal requirements for board documents in the event of a new share issue.
We have the experience to provide startups with advice to build a strong base and successfully bring on external investors.
