In the excitement and enthusiasm of starting a new business, formalising agreements are often overlooked. Startup founders are often friends or acquaintances, and it is easy to fall into the trap of only discussing roles, responsibilities, ownership structures and other important matters verbally. This can be dangerous.
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.
An ESOP is a way for you to set aside a pool of shares in your startup that you can allocate to various team members (e.g. employees, consultants or advisors – that’s right, it’s not just for employees, notwithstanding the name). The ESOP sets out the rules for granting shares.
Co-founder and CEO of jalebi.io, Zohare Haider is on a mission to help restaurants streamline operations to increase marginal income on every order they craft.
Setting up a company in ADGM, and specifically a Special Purpose Vehicle (SPV), is attractive for founders and investors. Founders benefit from the speed and simplicity that ADGM’s fully digitised incorporation process achieves, while investors are attracted by the investment flexibility and legal protections that ADGM’s strong regulatory environment provides.
Setting up a company in the Cayman Islands is quick, cost-effective, attractive to foreign investors and easy for founders to maintain. Creating an offshore company for your startup might seem daunting if you don’t know where to start, which is where Clara comes in.
Clara user Feras Jalbout founded Baraka after a career as an investor, spotting a gap in the market to promote financial inclusion and educate, enable, and empower everyone to invest. We spoke to him about the ups and downs of building a successful startup.
A Share Incentive Plan (also known as a SIP or an Employee Share Option Plan or ‘ESOP’), sets aside a pool of your company’s shares that you can allocate in the future to employees, directors, advisors and consultants, incentivising them to contribute to your startup’s success and growth.
Clara has done some digging to find some truly mind-bending facts about startups. Find out what country is deemed to be the most entrepreneurial in the world, where on the planet you’re likely to find unicorns or angels and how the time of year might affect your business.
The days of the humble pen and paper are over. From expanding on that tiny seed of an idea, brainstorms with co-founders and teammates, to impressive pitches and world domination, Clara’s picked the best digital tools to help your startup succeed.