Venture capitalists and angel investors often require a significant equity interest and involvement in your new business in exchange for providing the much needed funds to progress the venture. This can severely limit your control and direction of the business.
Some investors will want to be active in the business. Others passive adopting a ‘silent’ investor role. There are benefits to both approaches depending on your own skill set, access to external resources, business structure and objectives.
Finding the right investors is important in order to maintain the balance between ownership, control and direction of your business.
Regardless of the position, it is important to understand that the laws relating to capital raising are complex and can be confusing to all businesses regardless of their position in the business life cycle.
At Prestige Legal & Corporate Services, our experienced team of corporate lawyers regularly assist business clients interpret and apply the law in this area in order to avoid costly mistakes.
general advice on capital raising requirements
preparation of information memorandums
preparation of commercial agreements including: convertible notes; loan agreements and security arrangements; shareholder agreements; and unit holder agreements.