Legal tips for investors when investing in start-up projects

Legal tips for investors when investing in start-up projects

• It is necessary to carefully examine the business model and the potential of the team. Investing in a business model, you are actually buying the team and its thirst in the success of their faith in the result.
• Conduct preliminary discussions, evaluate the ford.
• Hire the lawyers who know how to "glue the deal."
• Sign a preliminary contract for reimbursement of your expenses on the transaction, if the sellers refuse to bargain.
• Conduct random or superficial due diligence. Due diligence is not required for small and simple business. Due diligence is needed for medium-sized and growing companies and companies with a "history"
• Do not enclose contracts "on a napkin" or by "concepts", we are not in Silicon Valley. Kazakhstan is very formal and bureaucratic state.
• In the contract there should be terms of going out of business, so that you feel comfortable.
• When buying a share of the business, check all the terms of the corporate governance of the business, even if you are a passive observer -shareholder.