Startup Essentials Workshop #7 – Building an investable venture

This week‘s startup essential workshop series started with „Building an investable venture“ organised by venturelab. Dr. Karim Maizar, who is a senior associate at the Swiss law firm Kellerhals Carrard, talked about foundation to create a solid company, clearing legal aspects and capturing intellectual capital. They offer a helpdesk in all areas and phases of life of a startup.  

In the first section Karim gave us an overview of the process of a financing round. For tactical reasons, founders should try to bring in their own term sheets at an early stage in the negotiation process to avoid an investor-friendly term sheet. He showed us which financing options exist:

1)     Company funds:
           • Cash flow

2)     Debt:
           • Loans
                  - Ordinary (subordinated) loans
                  - Convertible (subordinated) loans

3)     Equity:
           • Shares
                  - Common
                  - Preferred
           • Participation certificates (Partizipationsscheine)

Karim also gave advice for entrepreneurs that they should be aware of what kind of business angel they are talking to. About Crowdfunding he thought that the more people are involved, the more complicated it gets.

In the second section we looked at typical structure and content of term sheets – economics, control and other provisions.  

At the end there was a Q & A session. A lot of people asked questions and it was really interesting to listen to Karims suggestions so you could learn not only from the workshop itself but also form the questions at the end.

- Jelena Vukcevic, ETH Entrepreneur Club

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