Some legal mistakes are more expensive for a start-up than any operational error: they deter investors and can cost the company money and control. Here are the most common.
No agreement between the founders
The absence of formal agreements between co-founders can lead to disputes, lost equity stakes and problems with investors.
Product rights not secured
Leaving the brand, code or other intellectual property unprotected exposes the company to copying and legal disputes.
Errors in investment documents
Flawed terms in a SAFE (simple agreement for future equity), an SHA (shareholders’ or participants’ agreement) or other investment agreements can lead to loss of control over the company.
A sound legal framework is the foundation of a resilient start-up. Check how well your project is protected.
For more on these mistakes, see the ABACUS Telegram channel.
