You probably have an idea of what a shareholder agreement is. But why should you have a shareholder agreement before issuing even a single share in a small business? Why pay for a professional to prepare a shareholder agreement when you are family or very close friends.
Getting private equity investment from an investor that is either an institution or a sophisticated investor is gold dust for start-ups. Investment from an investor with knowledge or expertise in your business idea is a great validation of your business. Although it does not mean that your idea will be a success it does help to boost confidence in your idea. Outside investment from a sophisticated investor demonstrates that you are not alone in believing in your value proposition. However, preparing your business for a private equity investment is not straight forward if you have not been through the process before.
How do you become a high growth digital technology business attracting investors and corporate clients?
What we do at PAIL is assist start-ups that already have a product and are revenue generating but are still looking to make that transition to corporate clients or to take investor funding. This transition is not an easy one. If your business has largely been done by employing people-per-hour consultants on a pay as you go basis or writing your contracts yourself, it is difficult to navigate the complexity of licensing technology to a corporation as all of them have rigorous procurement processes. One of the major validation concerns of corporations and investors is the longevity of your business model i.e. are you a here today and gone tomorrow. Apart from ensuring legal compliance we offer insight into how a business can be better prepared from generating revenue to being a high growth business. We are fortunate enough to represent a few such businesses. Are you feeling the itch to make the shift from selling to consumers and SME’s to acquiring corporate clients and institutional investors?