Legal blog

Unregistered labour (sometimes called illegal labour or the ‘schwartz system’) is a work that meets the criteria for dependent work, is performed by any person (e.g. freelancer) for an entrepreneur or a company where such person does not have an employment or other employment-like relationship with the entrepreneur or company (instead, a contract is concluded on the basis of civil or commercial law).

According to the stage in which the startup currently is, we can distinguish 6 basic investment rounds. Various investors (including VC funds) usually specialise in specific stages of investment (typically early stages – Seed to Series A versus late stages from Series B onwards). The boundaries between the rounds are not clearly defined and therefore may partially overlap.

The traditional way of entering into a company is to acquire a share.  This approach requires the preparation of more extensive corporate documentation, costs more and takes longer. On the other hand, both parties know what they are getting into. Direct entry is mostly used in the later investment rounds (from Series A onwards). In the CEE region it is also often used in an Angel round.