Understanding Share Dilution: A Guide for Startup Founders During Fundraising
Navigating the complexities of share dilution is crucial for startup founders, especially tech startup founders during startup fundraising, and/or when setting up employee share schemes like EMI Schemes (Enterprise Management Incentive). Share dilution occurs when a company issues new shares to raise funds or distribute to employees, which decreases the ownership percentage of existing shareholders. Managing this dilution effectively is key to retaining value and control in your company from pre-seed to series A and beyond.
Friday 17 May 2024
5 Investment Legal Terms Every Founder Should Know
Stepping into the world of startup funding can be as tricky as it is exciting. To help you navigate it, here we will explain the five key legal terms every founder should know. Whether you're just starting out or gearing up for a big funding round, understanding these terms will help you secure the best deals and protect your startup's future. Let's ensure you're well-prepared for your next investor meeting!
Wednesday 15 May 2024
The Firing and Re-Hiring of OpenAI’s Founder: How Can It Happen and How Can Founders Be Protected?
The recent announcement of Sam Altman’s firing as CEO of OpenAI, and his subsequent re-hiring after his team took a stand, raises several questions about the vulnerabilities founders may encounter in their own companies and the importance of a solid company culture. Even though this happened in the US where rules are different, we’ll explore here the same situation under UK law, to see how founders can protect themselves from unexpected exits (the kinds they don’t want), and the terms they can include in their legal documents to safeguard their positions.
Wednesday 15 May 2024
Angel or VC Investments - which is better for me?
When it comes to funding your startup, you’re faced with an important decision: Should you seek angel investment or Venture Capital (VC) funding? Both are viable options, but each comes with its pros and cons. In this article, we’ll explore the key differences between angel and VC investments to help you make the right choice for you.
Wednesday 15 May 2024
How to set up an EMI Scheme for startups - why, what and how
Accelerate Law helps startups implement EMI Schemes. Here’s some useful info on them to get you started:What is an EMI Scheme and its goal?
Wednesday 15 May 2024