Representing a Startup Venture: Founders' Issues

Entrepreneurial ventures range in size and substance. Gone are the times when the definition of professional success was working hard, climbing the proverbial corporate ladder, and getting rewarded by a corner office. Nowadays, entrepreneurs strive to create a unique service/product, grow fast, and exit either through the sale of business, M&A or IPO. Most transactions in a startup world do not result from a well-planned, orchestrated process, but instead opportunistically arise. Things happen fast. The legal industry should keep up with the business world. It is therefore incumbent on counsel to ensure that certain legal structures are implemented from the very beginning, which do not hinder the founders’ ability to raise capital in a timely fashion, grow the business, attract talent and facilitate liquidity. Founders and potential investors/acquirers should focus on the merits of the business and not be distracted by legal issues. 

This course, presented by Ekaterina Mouratova, Esq., reviews legal matters that should be contemplated by the startup founders with the assistance of counsel and offers practical guidance to consider when preparing organizational documents for a startup venture.

Learning Objectives:

1. Choose the right legal entity for a startup business
2. Learn how to structure the ownership
3. Explore founders stock vesting
4. Examine tax treatment of unvested stock
5. Establish management and voting rights with consideration of the long-term goals
6. Discuss agreements related to transfer of shares
7. Learn about confidentiality, non-compete and “Assignment of Invention” provisions
8. Examine Other common provisions in founders' agreements