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In the fast-paced world of #startups, the excitement of #innovation and market #disruption often takes centre stage. However, amid this buzz, it’s crucial for startups to prioritise their #foundational #business structures from the outset. 

Strategic structuring – the keystone of startup success https://lnkd.in/dpjbKFer Bruce Dickinson | Partner | Webber Wentzel |  In the fast-paced world of startups, particularly those breaking new ground, the excitement of innovation and market disruption often takes centre stage. However, amidst this buzz, it’s crucial for startups to prioritise their foundational business structures from the outset. Working with entrepreneurs for over 25 years, it’s clear that that meticulous initial structuring is a key linchpin for long-term success... #corporatestructure #startup #IP #duediligence #entrepreneur #shareholding #regulation Bruce Dickinson Webber Wentzel

This is a short, useful article from Pitchbook on Getting your startup acquisition ready. Note it speaks specifically to "start-ups" not mature firms, but has some universal insights like: “Experienced M&A leaders are very good at saying: ‘Here’s a two-page term sheet, and we’ll figure out the rest later,’” Achler said. “If something is left unsaid in the term sheet then it can be hard to renegotiate once the ball is already rolling. Founders need to ask the hard questions upfront because once the term sheet is signed, leverage is lost.” https://lnkd.in/gafx7vjK #entrepreneurship #exitstrategy

The All-In-One Term Sheet Guide for Startup Founders A term sheet outlines the key terms and conditions for an investment in a startup. As a founder seeking investment, here are 10 important clauses that you should be aware of: 1. Valuation Pre-money: Company's valuation before investment to determine equity split. Post-money: Company's valuation including the new investment capital. 2. Equity Common stock: Basic shares with voting rights but low priority in a liquidation. Preferred stock: Enhanced rights like priority in liquidation, anti-dilution protection. 3. Liquidation Preference Specifies the order in which shareholders get paid if the company is sold or goes bankrupt. Investors usually get paid back before founders/employees. 4. Vesting Schedule The schedule over which founders/employees earn their equity over time, e.g. 4 years with a 1-year cliff. 5. Anti-Dilution Protects investors by adjusting their price per share if the company raises money at a lower valuation in the future. 6. Board Representation Who gets board seats - a mix of investors, founders, and independent directors. 7. Exit Strategy IPO, acquisition, or merger provisions and the required shareholder approval for each path. 8. Confidentiality & Exclusivity Can't share details. Startup can't talk to other investors for a set period. 9. Drag/Tag Rights Drag: Majorities can force minorities to join a company sale. Tag: Minorities can join a sale initiated by majorities. 10. Milestones & Tranching Funding tied to startup achieving certain technical, revenue or other milestones. Read more in attached document (Source: Morgan Lewis) 👉 If you find this helpful - please like, comment & share so that it reaches founders. 🚀 Check out my free newsletter for more insights: https://lnkd.in/dKZQKHg2 . #startup #fundraising #venturecapital #funding #fundraising #founders #founderjourney #entrepreneurship #entrepreneur #founderstories #startuptips #siliconvalley #startups #vc #vcfund #vcfunding #funding #startups #termsheet #founder

What do startups really want from corporate investors? Global Corporate Venturing held a webinar exclusively with startup founders to ask what they want and what they don't want. And some had some surprising responses. Here is my summary of what they said. Corporate investors take note: https://lnkd.in/dw6MwH7W #cvc #corporateventuring #startups

CCPS Vs Start-ups Approach Vs Investor Rights!! CCPS? Compulsory convertible preference shares (CCPS) A Type of preferred stock that can automatically convert into equity shares after a predetermined period. Is CCPS better than equity? CCPS typically offer higher returns compared to other instruments such as bonds, as they offer a mix of fixed income and potential for capital appreciation. Benefits of Issuing CCPS? CCPS can be a mutually beneficial tool for investors and company founders during the funding stage of a startup. CCPS can provide investors with protection and income when a company's valuation is low, while also allowing them to participate in the company's growth when its value and share price increase. CCPS can also be useful for companies that want to raise capital without immediately diluting ownership. Investors prefer CCPS more as in CCPS they receive a fixed rate of return in the form of dividends, and in case of liquidation or insolvency, the shareholders get the priority per the waterfall mechanism. #startup #startupfounder #earlystagestartups #startupsuccess #startupculture #startuplifestyle #founder #Entrepreneurs #businessowner #youngsters #earlystageentrepreneurs #startups #startupmindset #startupnation #startupbusiness #startupecosystem #startupjourney #startupgrind #hustle #startupaspirants #challenges #reality #competitive #startupindia #founderstory #strategy #businessideas #sustainability #expectations #ccps #equityfunding

#Revenues or Not, that is the question! #startup #investment #vc #business #emprendimiento #emprendedor #entrepreneurs https://lnkd.in/dsAEKBwx

“More investors have been trying to add a specific clause to funding round documents, dubbed unofficially a ‘portfolio sale clause’… …simply put, this clause enables VCs to sell their shares in the company they’re investing in without giving other investors the right to block it or sell their own shares at the same time. This provision would only apply if the VCs were to liquidate their whole portfolio, not just the individual stake in that one company.” Everyone’s looking for liquidity. Something for entrepreneurs to be aware of, even if this clause is not all that impactful to them. https://lnkd.in/egyrYJhw #vc #venturecapital #startups #entrepreneurs #entrepreneurship #tech #technology #innovation #money #business

Here is some growth advice for founders, from Rob Bier, the author of Smooth Scaling: 20 Rituals to Build a Friction-Free Organisation: #growth #scale #advice #founders #startups