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.
