Capital raising is complex
Raising capital is a crucial step in many startups’ life-cycle. It is no easy task to get investment in the first place, and when you do; the way you go about raising has enormous long-term implications for your business. If you agree to poorly drafted terms, this can have disastrous implications in terms of control of your business and the way you can run your business in the future.
Getting it wrong can cause serious problems
Failing to implement the right arrangement for your circumstances can come back to bite you. Loss of control, poorly defined payment milestones, investor fall-outs, disputes around rights and excessive warranties can create disputes down the line, inhibit a company’s growth and its chance of raising again in the future. If done correctly, raising will be the perfect kindle to your company’s fire. If done incorrectly, you may be left with nothing but ash.
We assess your circumstances and make recommendations
UX Law are experts in the capital-raising process. We can provide you with strategic legal guidance from start to finish. Every company and investor is different, so every capital raise will be different. We’ll assess your circumstances, and draft and negotiate key documents for you, including term sheets, subscription agreements and shareholder agreements. Our goals are to:
- Set clear and defined payment milestones
- Minimise loss of control and maintain founder power
- Minimise liability risk and warranties
Frequently asked questions
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