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Founders' Agreement for Startups: The Complete Guide

Founders agreements are important documents for any startup.  They ensure that all the business founders understand their roles in the company, agree on how decisions will be made, how equity, assets and capital will be shared, as well as the rights, responsibilities, obligations and duties of each member of the startup. Why You Need a Founders’ Agreement If you’re planning to start a new business with another person, you need to make sure that you have a clear understanding of who owns what and what each party’s responsibilities are and how shares are going to vest with each party. This also includes things like who gets paid first, who has final say, and who takes care of what. The main aim of a founders' agreement is to avoid future disputes from cropping up. You might think that shall not happen, but you would be surprised as to how common this actually is. When is a Founders' Agreement Used | Instances when You Might Need a Founders' Agreement A example of how a founde

9 Best Market Research Tools for All Your Needs: 2022 Review

A startup must know what its customers want. Otherwise, it is setting itself up for failure . That's why conducting thorough market research is a must for any product or service development process. Why Do You Need these Market Research Softwares / Tools? Market research helps show you who are interested in your product or service, where they are, how to reach these potential customers and how much they are willing to pay you. It is a continuous and on-going process that you use and reuse while you create your proof of concept , prototype, MVP and repeated product or service reiterations. It also helps you create your business strategy and improvise upon your business model and revenue model(s) . That said, here are the best of the best market research tools that are sure to ease the process out for you as well as speed it up, so that you can collect and analyze insights on the go. Market Research Tools for Various Purposes Best Tools to Analyze Pre-Existing Data, Understand Tre

Advisory Shares: An Explainer (US Law)

Article research by   Shreyas Nair  from WinSavvy's legal research team. Here's  his LinkedIn bio  for more information on him. What are Advisory Shares Advisory shares are a sort of stock option that are granted to business consultants rather than workers. They might be given to start-up company advisers instead of cash. Advisors are typically offered options to purchase shares rather than real shares.   Advisory shares can aid in maintaining confidentiality while avoiding conflicts of interest. They may, however, be pricey for a fledgling firm.   Advisory shares, also known as advisor shares, are financial incentives that take the form of stock options. Advisors who are granted advisory shares are often entrepreneurs who have previously served as firm founders or top executives. They trade their knowledge and contacts for shares in a new firm.   These consultants are not the same as accountants or attorneys. Advisors who get advisory shares are unlikely to be expecte

Share Purchase Agreement - All You Need to Know

Note: This article is not specifically on US Law, but is for an internationally wide audience. For the US version relating to purely a US legal system, visit our article on stock purchase agreement . What is a Share Purchase Agreement A share purchase agreement (SPA) is a contract between the seller and buyer of shares in a company. It sets out the terms on which the seller is selling his shares and the buyer is buying the shares. This one is a pretty complicated contract, so you need to be aware of the basic elements required when drafting a contract . Getting it wrong can have some pretty negative effects for your business , so you better watch out! The share purchase agreement (SPA) will describe the shareholding in terms of percentage ownership. In other words, it will specify how many shares you are buying, at what price per share and what percentage of voting rights this gives you against all other shareholders in the company. A share purchase agreement is also used when a busine