1 hr 1 min
EP #54 - Boris Räber & Alexander Eichhorn: Legal Advice For Later-Stage Startups Swisspreneur Show
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- Entrepreneurship
Timestamps
1:58 - From a legal aspect, what scaling mistakes do Swiss startups make repeatedly?
10:30 - Convertible loans or capital increase?
21:21 - How to handle non-compete clauses
33:10 - What startups should me more aware of
38:14 - Taxes for startups
The Episode In 60 Seconds
Just like your apartment, your company needs some basic housekeeping in order to avoid descending into chaos.
Financing rounds
It’s not advisable to negotiate your term sheet without a lawyer if you don’t have previous experience. Although they aren’t legally binding they set a strong precedent which is hard to negotiate your way out of.
By the same token, don’t use the template of your investor.
Be sure you understand the liquidation preferences you agree to
If fundraising has to be fast and determining a price is difficult, consider a convertible loan
Employment contracts
Watch out for IP (intellectual property) rights, notice period and non-compete clause (limit 3 years)
For employee incentivisation, you can decide between
Share plan: more tax friendly for your employees, usually higher administrative burden for the company
Phantom stocks: easier to administer but taxed as income
Exit
Exits usually take the form of either an M&A (Merger and Acquisition) or an IPO (Initial Public Offering)
M&As come in 2 forms:
Asset deal: meaning you sell all the companies assets, including employees to a new owner
Share deal (more common): the acquiring party buys a majority of the shares and therefore takes control of the company.
IPO: are still rare in Switzerland, mostly because they involve large costs (several $ millions) for preparing the so called “prospectus”, the document based on which the shares are offered on the stock exchange.
Don’t forget to give us a follow on our Twitter, Instagram, Facebook and Linkedin accounts, so you can always stay up to date with our latest initiatives. That way, there’s no excuse for missing out on live shows, weekly give-aways or founders dinners!
Timestamps
1:58 - From a legal aspect, what scaling mistakes do Swiss startups make repeatedly?
10:30 - Convertible loans or capital increase?
21:21 - How to handle non-compete clauses
33:10 - What startups should me more aware of
38:14 - Taxes for startups
The Episode In 60 Seconds
Just like your apartment, your company needs some basic housekeeping in order to avoid descending into chaos.
Financing rounds
It’s not advisable to negotiate your term sheet without a lawyer if you don’t have previous experience. Although they aren’t legally binding they set a strong precedent which is hard to negotiate your way out of.
By the same token, don’t use the template of your investor.
Be sure you understand the liquidation preferences you agree to
If fundraising has to be fast and determining a price is difficult, consider a convertible loan
Employment contracts
Watch out for IP (intellectual property) rights, notice period and non-compete clause (limit 3 years)
For employee incentivisation, you can decide between
Share plan: more tax friendly for your employees, usually higher administrative burden for the company
Phantom stocks: easier to administer but taxed as income
Exit
Exits usually take the form of either an M&A (Merger and Acquisition) or an IPO (Initial Public Offering)
M&As come in 2 forms:
Asset deal: meaning you sell all the companies assets, including employees to a new owner
Share deal (more common): the acquiring party buys a majority of the shares and therefore takes control of the company.
IPO: are still rare in Switzerland, mostly because they involve large costs (several $ millions) for preparing the so called “prospectus”, the document based on which the shares are offered on the stock exchange.
Don’t forget to give us a follow on our Twitter, Instagram, Facebook and Linkedin accounts, so you can always stay up to date with our latest initiatives. That way, there’s no excuse for missing out on live shows, weekly give-aways or founders dinners!
1 hr 1 min