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    TECH LAW FOR STARTUPS Angels or Dragons?  How to prepare your business for investment DUG CAMPBELL MBM COMMERCIAL LLP 6TH APRIL 2011 @dugcampbell @techlaw4startup
PREPARATION IS KEY @techlaw4startup 2
FUNDING OPTIONS BOOTSTRAPPING GRANT FUNDING DEBT FUNDING (BANKS etc.) ALTERNATIVES: REVENUE BUSINESS ANGELS VENTURE CAPITAL	 @techlaw4startup 3
WHAT IS A BUSINESS ANGEL? “SMART” MONEY EXPERIENCE/CONTACTS CREDIBILITY & LEVERAGE LOCATION SYNDICATES ACTIVE/PASSIVE DECISIVE: TIMESCALES EIS @techlaw4startup 4
WHAT DO YOU NEED TO SHOW? SOLID POTENTIAL FOR RETURN GOOD PLAN FOR THE CASH WINNING ATTITUDE SEASONED TEAM COMPETITIVE EDGE WELL-DEFINED EXIT STRATEGY @techlaw4startup 5
FIND THE RIGHT ANGELS PERSONAL CHEMISTRY DEEP POCKETS LOCATION CO-INVESTMENT STAGE @techlaw4startup 6
BUSINESS PLAN TEAM/TECH/TRACTION EXECUTIVE SUMMARY GROWTH POTENTIAL FORECASTS  COMMITMENT ROUTE TO MARKET EXIT STRATEGY FINANCIAL PROMOTION / FSMA @techlaw4startup 7
THE PITCH THE 10/20/30 RULE (Guy Kawasaki) 1. PROBLEM		 6. COMPETITION 2. SOLUTION		 7. TEAM 3. BUSINESS MODEL   	 8. PROJECTIONS / MILESTONES 4. UNDERLYING MAGIC    9. STATUS & TIMELINE 5. SALES & MARKETING	 10. SUMMARY /CALL TO ACTION @techlaw4startup 8
THE INVESTMENT PROCESS TERM SHEET DUE DILIGENCE INVESTMENT AGREEMENT ARTICLES OF ASSOCIATION DISCLOSURE LETTER SERVICE CONTRACTS INTELLECTUAL PROPERTY @techlaw4startup 9
INVESTMENT AGREEMENT MONEY IN RETURN FOR SHARES WARRANTIES (LIMITS) CONSENT MATTERS UNDERTAKINGS INFORMATION RIGHTS INVESTOR DIRECTOR/OBSERVER MONITORING FEE RESTRICTIVE COVENANTS	 @techlaw4startup 10
ARTICLES OF ASSOCIATION APPROVED ISSUES COMPULSORY TRANSFER GOOD/BAD LEAVER DRAG/TAG PROVISIONS @techlaw4startup 11
WHICH WILL ALL LEAD(HOPEFULLY) TO... @techlaw4startup 12

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Tech Law For Startups: Angels or dragons? Preparing your business for investment

  • 1. TECH LAW FOR STARTUPS Angels or Dragons? How to prepare your business for investment DUG CAMPBELL MBM COMMERCIAL LLP 6TH APRIL 2011 @dugcampbell @techlaw4startup
  • 2. PREPARATION IS KEY @techlaw4startup 2
  • 3. FUNDING OPTIONS BOOTSTRAPPING GRANT FUNDING DEBT FUNDING (BANKS etc.) ALTERNATIVES: REVENUE BUSINESS ANGELS VENTURE CAPITAL @techlaw4startup 3
  • 4. WHAT IS A BUSINESS ANGEL? “SMART” MONEY EXPERIENCE/CONTACTS CREDIBILITY & LEVERAGE LOCATION SYNDICATES ACTIVE/PASSIVE DECISIVE: TIMESCALES EIS @techlaw4startup 4
  • 5. WHAT DO YOU NEED TO SHOW? SOLID POTENTIAL FOR RETURN GOOD PLAN FOR THE CASH WINNING ATTITUDE SEASONED TEAM COMPETITIVE EDGE WELL-DEFINED EXIT STRATEGY @techlaw4startup 5
  • 6. FIND THE RIGHT ANGELS PERSONAL CHEMISTRY DEEP POCKETS LOCATION CO-INVESTMENT STAGE @techlaw4startup 6
  • 7. BUSINESS PLAN TEAM/TECH/TRACTION EXECUTIVE SUMMARY GROWTH POTENTIAL FORECASTS COMMITMENT ROUTE TO MARKET EXIT STRATEGY FINANCIAL PROMOTION / FSMA @techlaw4startup 7
  • 8. THE PITCH THE 10/20/30 RULE (Guy Kawasaki) 1. PROBLEM 6. COMPETITION 2. SOLUTION 7. TEAM 3. BUSINESS MODEL 8. PROJECTIONS / MILESTONES 4. UNDERLYING MAGIC 9. STATUS & TIMELINE 5. SALES & MARKETING 10. SUMMARY /CALL TO ACTION @techlaw4startup 8
  • 9. THE INVESTMENT PROCESS TERM SHEET DUE DILIGENCE INVESTMENT AGREEMENT ARTICLES OF ASSOCIATION DISCLOSURE LETTER SERVICE CONTRACTS INTELLECTUAL PROPERTY @techlaw4startup 9
  • 10. INVESTMENT AGREEMENT MONEY IN RETURN FOR SHARES WARRANTIES (LIMITS) CONSENT MATTERS UNDERTAKINGS INFORMATION RIGHTS INVESTOR DIRECTOR/OBSERVER MONITORING FEE RESTRICTIVE COVENANTS @techlaw4startup 10
  • 11. ARTICLES OF ASSOCIATION APPROVED ISSUES COMPULSORY TRANSFER GOOD/BAD LEAVER DRAG/TAG PROVISIONS @techlaw4startup 11
  • 12. WHICH WILL ALL LEAD(HOPEFULLY) TO... @techlaw4startup 12