An Advice To Tech Start Up Founders – Incorporation, Fund Raising and Equity Sharing

Proshare

Monday, March 12, 2018   10.15AM / Paul Smith, Hyperloop One 

I've spent this morning with my head in my hands. Yet another early-stage tech startup has been screwed over by bad advice from people claiming to represent the sector. 

So this week I'm going to write a post about bad actors in tech communities. I'm tired of seeing opportunist digital agencies, business advisers and "angels" hurt early-stage business because they literally have no idea how the fundamentals work. 

Startup founders - when it comes to:
- incorporation (how many shares to issue, how much they're worth)

- raising investment (whether you should raise at all, how much to raise, what the valuation should be)

- giving away any amount of your equity (to advisors, agencies, staff, other founders) 

....don't guess, don't make it up, and *always* get a third (and fourth) opinion; make sure at least two of these opinions are from other founders who have successfully launched and/or raised money and further on in their journey. 

Founders rarely say no when other founders ask for advice. 

There's no right way to launch a successful tech business - but there absolutely is best practice.  

About Paul Smith
A consistent, driven entrepreneur with a track record in business operations, senior management, business development and project delivery; a longstanding mentor of technology founders across Europe. He can be reached via https://www.linkedin.com/in/paulsmithho/

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