Are You Investor Ready?

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Raising money for seed funding is an exciting and stressful time. Between getting your pitch ready and finding investors, you’d be lucky to get a bite of food and a couple of hours of sleep in. Ensuring your business’s legal aspect is healthy, however, is just as important as ensuring you stay healthy. There is nothing worse than walking in to pitch fatigued and down with a cold, then realising that your business does not own any intellectual property.

Here are several tips to help you along:

1. Term Sheet

A Term Sheet is a great way to get started on your investment process. It is a flexible document that allows you to express your proposed terms of the investment. Handing a Term Sheet to prospective investors is a professional way to garner interest and open the door to further negotiations. Learn more about how a Term Sheet can help you and LawPath’s Term Sheet – Seed Investment.

2. Shareholders Agreement

A Shareholders Agreement governs the relationship between the shareholders of a company, normally created at the beginning of a business venture. Having a shareholders agreement is attractive for investors who want to ensure that their interests are and will be protected. Learn more about whether you need a Shareholders Agreement and LawPath’s Shareholders Agreement.

3. Employment Agreement

Having employment agreements in place for your current employees sets the tone for the business. Ensuring that the rights and obligations of your employees are clearly set out gives the potential investor(s) an added peace of mind. Learn more about the Employment Agreement and how it will benefit you.

4. Intellectual Property Agreement

Intellectual property comprises most of a small business’s value, and it is crucial that all the intellectual property is owned by the business. It is especially important that the ownership of any intellectual property of your co-founder(s) and/or employees are transferred to the business. Learn more about the Intellectual Property Agreement and gain insight into its essential features.

Unsure where to start? Contact a LawPath consultant on 1800LAWPATH to learn more about customising legal documents, obtaining a fixed-fee quote from our network of 600+ expert lawyers or to get answers to your legal questions.

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