In the founding stages of a start up, the main concern is insuring that the company is structured correctly. Critical issues for early stage companies include incorporation, capital structure, and IP protection.
Company and Capital Structure
Creating a proper capital structure at founding will dramatically simplify a start-ups ability to attract and complete financing. Potential issues include the jurisdiction of incorporation, share capital structure as well as the allocation of founding shares among key team members.
A clear IP strategy is critical, not only in protecting a start-up’s work against unfair competition, but also in order to insure that the company can be financed by outside investors. If a company represents the vessel for a product or idea, the IP strategy insures that everything that encompasses the product and idea is encapsulated in the vessel which can then be fairly valued and leveraged.