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Founders Agreement vs Shareholders Agreement

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The key elements of both Founders Agreements and Shareholders Agreements may vary depending on the specific circumstances and needs of the company. There might be overlaps between the two documents, but the difference can be found in the main elements of each.

Protecting your business with non-competes

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One way to protect your startup from unfair competition is to include non-compete clauses in your employment contracts. You could also have a non-compete in the shareholders agreement that you sign with your investors.

An Introduction to Delaware C Corps

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You want a structure and business environment attractive to investors and venture capital firms. Many investors and venture capitalists say a Delaware C-corp is a good option.

The anatomy of a Term Sheet

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A term sheet is a relatively short document setting out the key terms of the investment agreed upon between the company and the investor in user-friendly language. It is also referred to as a Memorandum of Understanding (MOU). It includes the business and finance terms and could include legal terms regarding confidentiality and dispute resolution.

Essential documents for establishing a startup

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Founders are often risk-takers with lots of energy and great business ideas. And that is fantastic, as long as you remember to set up the correct legal foundation for your venture. Not having the proper legal basis for your startup might be too big a risk. Having the correct legal documents in place is essential for the future success of your startup.

Funding rounds; what you need, when and why

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The initial funding rounds of a start-up are often referred to as seed funding. At this stage, investors invest in the founder, the idea, and the company’s potential. That money is usually used for product development and market research. Many start-ups don’t make it to the next round of funding.

SAFEs explained | The founders’ quick guide

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A SAFE (which stands for Simple Agreement for Future Equity) is the most popular type of convertible for early-stage startups. It was originally created by Y Combinator in 2013.

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