While having a concrete problem to solve is primary, it is important to not neglect getting the right team. The founding members of a team and how the relations between them are governed is important for the success of your startup. This includes ensuring sustainable growth, reaching markets, having appropriate expertise and appealing to investors. Annabel discussed with Startup Wise Guys’ Legal Officer, Anni Säär why team formation is so crucial for a successful startup.
Topics explored include:
- Why should you consider your team’s legal relationship from the start?
- How do you create legal relations or rules to govern your team?
- What is a Shareholder Agreement (SHA)?
- Examples from real startups on why not having a SHA in place can break the startup.
- What is reverse vesting?
- What is a cliff?
- What should you look out for in agreements between you and an investor?
- Is it important to carry out due diligence on an investor?
- And why Anni says “you have to treat your startup as you would treat a marriage.”