How Legal Structuring Helps Startups Scale Without Future Disputes
Most startups do not fail because of a lack of ideas. The reason why many startups fail is because they are growing fast enough to see things that weren't there at the beginning. A co-founder's hand-shake becomes an issue of ownership. The freelancer asserts his claim over your product. You receive requests from investors for documents you don't have. That is when it costs much more money to fix it than to prevent it. The smart entrepreneur knows that legal structuring is not about paper work but rather building the foundation upon which your business will flourish. The Early Stage Feels Simple Until It Doesn't A small team can operate informally for a while. Friends start a technology venture. One person handles sales. Another writes code. A third invests some money. Everyone trusts each other, so formal agreements seem unnecessary. Then the company begins to grow. A new investor joins. The business...