Tags
Legal
File
Checklist
Files & media
Corporate & Cap Table
- Improper founder agreement leading to later disputes
- Multiple classes of shares with complex preferences and privileges
- Unclear IP ownership rights between founders/company
- Ambiguity on equity allocation to advisors/angel investors
- Vesting schedules not imposed on founder equity on time
Regulatory Compliance
- Confusion between distributing shares vs stock options to employees
- Non-compliance with foreign investment laws for certain sectors
- Fail to obtain necessary licenses for business operations on time
- Delay in trademark registration leading to later disputes
- Ignore data privacy laws relevant to business model early on
Agreements & Protections
- Weak terms on employment/advisor agreements for company protection
- Revenue/commercial contracts not safeguarding IP rights properly
- Overlook liability cap or indemnity clauses with vendors and partners
- Customer agreements have loose general terms and conditions
Raising Capital
- Complex convertible instruments used without right counsel
- Full investor implications not analyzed for issuing certain instruments
- Fund raise without shareholders consent/rights or proper approvals
- Disagreements later over liquidity preference calculations
Exit Process
- Ignorance of small print terms associated with trade sale vs IPO
- Tax implications in certain jurisdictions not evaluated earlier
- Forgetting clauses related to accelerated vesting or retention bonuses
- Assuming no liability for customers/vendors post acquisition