idcee 2013: 101 legal guide for startups - michał karwacki (counsel @ dentons)
DESCRIPTION
http://idcee.org/p/micha-karwacki/ Michał Karwacki is a counsel in Dentons' Warsaw office and a member of the Dentons VC/PE International Legal Practice Team. Michał has over 13 years of professional experience and is identified by clients as a "reputable private equity specialist”, a “noteworthy lawyer who is thorough and committed” and endorsed for his "efficiency, experience and excellent skill set” in the international reputable legal ranking of Chambers Europe. Michał's main territories of interest are Poland, Turkey, Romania, Czech, Ukraine and Africa. Pic's are here: http://www.flickr.com/photos/idcee/sets/ More @ http://idcee.org Follow us on: YouTube: http://www.youtube.com/user/OfficialIDCEEChannel Facebook: https://www.facebook.com/IDCEE Linkedin: http://www.linkedin.com/groups/IDCEE-3940138 Twitter: https://twitter.com/idcee_eu Google+: http://gplus.to/idcee Flickr: http://www.flickr.com/photos/idcee/collections/TRANSCRIPT
IDCEE 2013Kiev, Ukraine
101 LEGAL GUIDE FOR STARTUPS
11 October 2013
Michał Karwacki
101 LEGAL GUIDE FOR STARTUPSContents
• About Dentons
• Startup life cycle
• P.O.P.E.
• Planning (concept)
• Organization (incorporation)
• Positioning (operations)
• Exit (sale)
• Summary
11 October 2013 2
Meet DentonsA global law firm established in March 2013 by a combination of Salans, FMC and SNR Denton
2500 lawyers and professionals in 79 locations across 52 countries
11 October 2013 3
101 LEGAL GUIDE FOR STARTUPSPlanning
• Your concept (barrier of entry, how „unique” factor, how to monetize the concept)
• Costs and funding
• Business plan
• Feedback from others
• How advisors can help
11 October 2013 4
101 LEGAL GUIDE FOR STARTUPSIncorporation (available structures)
• Pros and cons• Liability issues
• Raising capital
• Tax issues
11 October 2013 5
Sole Proprietorship Partnership Corporation
Difficulty to Establish Low Medium Relatively high
Availability of Startup Capital Low Medium High
Control You are the decision-maker Need to share – SHA Depends on the type of corporation
Ability to Terminate n/a Medium Medium
Tax Liability You are solely responsible Reponsibility shared Limited liability
Corporate Regulation Low Medium High
101 LEGAL GUIDE FOR STARTUPSOperations - commercial (1)
• Services and sales• Internet site
• Contracting with customers
• General terms
• Personnel relations• NDA
• IP rights (employment vs. civil law contract)
• IP protection• Trademark
• Patents
• Confidentiality and trade secrets
11 October 2013 6
101 LEGAL GUIDE FOR STARTUPSOperations - funding (2)
• Funding• Investment term sheet (HoT, TS,
LoI)
• Minority rights protection
• Supervisory board
• Anti-dilution
• Reserved matters
• Restrictions on sale of shares (lockup, drag along, tag along, call option, put option)
11 October 2013 7
101 LEGAL GUIDE FOR STARTUPSExit
• Exit• Resale to Founders / MBO
• Private sale or auction sale to the strategic investor or PE House
• IPO
11 October 2013 8
101 LEGAL GUIDE FOR STARTUPSSummary
• Summary
• Initial stage
• Organization stage
• Operations
• Exits
11 October 2013 9
Key contacts
Michał KarwackiCounsel, Venture Capital and Private Equity Group
T: +48 22 24 25 659F: +48 22 24 25 [email protected] Rondo ONZ 1, 00-124 Warsaw, Poland
© 2013 Dentons
Dentons is a global legal practice providing client services worldwide through its member firms and affiliates. This publication is not designed to provide legal or other advice and you should not take, or refrain from taking, action based on its content. Please see dentons.com for Legal Notices.
Igor OstrowskiPartner, Head of IP, Technology & Communications Practice Group in Poland and CEE
T: +48 22 24 25 673F: +48 22 24 25 [email protected] Rondo ONZ 1, 00-124 Warsaw, Poland
Victor NaumovPartner, Head of IP, IT & Telecomunications Practice Group in Russia
T: +7 812 325 84 44F: +7 812 325 84 [email protected] Moika Embankment 36, 191186 St. Petersburg, Russian Federation
Natalia SelyakovaPartner
T: +380 44 494 47 74F: +380 44 494 19 [email protected] Volodymyrska Str. 49-A, 01001 Kyiv, Ukraine