Eldison

🧭 The step-by-step guide to raising your next round

Understanding the key milestones of an investment process is a crucial step for any founder eyeing external financing. With only about 20% of new businesses in the US surviving the first year, securing funding for future growth is fundamental.

That’s where we step in. Here’s our brief guide to successfully navigating an investment round:

1️⃣ Start early: Identify your ideal investor profile as soon as possible. Investors should not only bring capital but also support and champion your vision.

2️⃣ Prepare for due diligence: Be ready for thorough scrutiny from investors and prepare all necessary docs beforehand to speed up the process.

3️⃣ Pick your financing instrument: Whether it's convertible loans or equity, choose the option that suits your startup's current stage and future plans.

4️⃣ Prep the contracts: Use battle-tested templates and get legal advice to sign a fair and balanced investment agreement.

5️⃣ Negotiate: Be prepared to discuss investment size, company valuation and investor rights.

Read the complete guide here: https://www.eldison.com/post/how-to-navigate-the-startup-investment-journey?utm_medium=organic&utm_source=facebook&utm_campaign=legal

For more insights and resources, including a startup valuation calculator and a glossary of investment terms, check out our blog: https://www.eldison.com/resources?utm_medium=organic&utm_source=facebook&utm_campaign=legal. Looking for legal support in your next investment round? Reach out to us! 🌟

How to navigate the startup investment journey | Eldison – Where legal meets tech Imagine that you're making one of the most significant decisions in your startup's journey—exchanging a considerable share of your company for funding. We’ve put together a short guide to the investment process that walks you through everything from advance planning to funding and negotiations.

📬 May the (legal) force be with you!

It’s May - the temperatures are on the rise, the days are getting longer and we want to make sure you have enough food for thought to power through Q2. That’s why we’re back with a new edition of our newsletter dealing with anti-dilution provisions.

What can you expect to learn today?

📍 Why investors want anti-dilution provisions
📍 What options are on the table for you as founders
📍 Why the weighted average method makes more sense for the company

Dive into the details here 👇🏼

Anti-dilution provisions | Eldison – Where legal meets tech It’s May (already) - the temperatures are on the rise, the days are getting longer and we want to make sure you have enough food for thought to power through Q2. That’s why we’re back with a new edition of our newsletter dealing with anti-dilution provisions.

🔒 NIS 2 Directive: elevating cybersecurity standards in the EU

The EU’s new directive is a big step up in Europe's cybersecurity landscape. It expands cybersecurity requirements across more sectors, demanding stricter compliance for medium and large businesses - and some small enterprises in critical sectors.

What’s new?
🔸 Broader scope including medium and large entities in many new sectors
🔸 Enhanced protocols for risk assessments, top-tier cybersecurity, staff training and incident management

When to comply?
Czech companies 🇨🇿 must align with these new standards by October 16, 2024. Failure to comply could lead to fines of up to 2% of global turnover or 10 million EUR.

👉 Learn more in our newest blog post:

EU's new cybersecurity directive: NIS 2 | Eldison – Where legal meets tech The European Union has advanced its cybersecurity with the Network and Information Security (NIS 2) Directive, in effect since January 16, 2023. This update broadens the coverage of security protocols, affecting a wider range of sectors.

🎯 The ultimate phantom ESOP cheat sheet!

Are you an early-stage Czech/Slovak startup looking to launch an ESOP? Then chances are phantom plan is the right fit for you. To simplify the process, we’ve just released a handy overview of all key ESOP parameters, complete with market-standard values!

Here's what it lays out for you:

- An overview of all must-have parameters like pool size, vesting parameters and more
- A simple description of each parameter
- The market-standard value for each parameter

Over 80% of our customers use our market-standard parameters with zero tweaks needed. 🚀

👉 Download your cheat sheet now:

Eldison Planning to launch your phantom ESOP plan? Download our cheat sheet to get all key ESOP parameters and their market-standard value.

Hey, founders! Do you know your startup valuation? 👀

Knowing the value of your startup is critical for growing your business. It tells the outside world how much your company is worth. 💰 And it’s also a must for raising funds.

We’ve put together a short guide to fixing your pre-revenue valuation in our newest blog post. Here are some key takeaways:

🟠 Equity dilution is typically proportional to the funds you secure based on your valuation.

🟠 It’s advisable to adopt a flexible approach to valuation, with room for negotiation.

🟠 Founders will have to give up at least 10-20% of the company with each investment round.

Dive into the full blog post here: https://www.eldison.com/post/how-to-calculate-the-valuation-of-pre-revenue-startups?utm_medium=organic&utm_source=facebook&utm_campaign=investment

✨As a bonus, you can use our free valuation calculator and get your pre-revenue valuation estimate within minutes. Find it in the blog post. ✨

How to calculate the valuation of pre-revenue startups | Eldison – Where legal meets tech Are you a pre-revenue startup planning to raise funds? Then this blog post is a perfect fit for you because understanding your valuation is a key first step. It’ll boost your fundraising confidence, help you impress your investors and prepare you for future funding rounds.

🚀 **Launching a market-standard phantom ESOP has never been easier!**

Embarking on a startup journey? 🏔️ Just like climbing Mount Everest, preparation is everything. For all Czech and Slovak founders, adopting a phantom ESOP is a game-changer in terms of hiring and retaining top talent. 🌟

Why go for the phantom plan? It’s simple:

- 📈 Benefit from a flexible, easy-to-set-up plan that grows with your startup
- 💰 Offer a stake in the company’s future without actual stock ownership
- 🔁 Prepare for an easy switch to an asset-based plan once you grow

Interested? Read more here:

Design your own market-standard phantom ESOP | Eldison – Where legal meets tech Launching an ESOP is like climbing Mount Everest - most of the work has to be done before you begin the ascent. If you’re an early-stage startup from Czech or Slovakia, phantom (virtual) plan is likely a perfect fit for you.

**Rule no. 1 of product development: fail fast to scale fast 🚀**

Ever thought failure could lead to success? Our experience with dSpot, the first iteration of our ESOP management platform, proves just that. We pivoted from the initial product to create a platform that's a win-win for us and our customers.

So what are the key findings?
💡 Focus on standardization and listen to your customers.
💡 Tailor your product to your ideal customer profile without losing sight of your vision.
💡 Recognize when it’s time to pivot. Look for signs like overwhelming support demands and the cost of the overall architecture.

Thanks to our early pivot, we saw an 80% cut in technical costs and a 90% reduction in onboarding time. 🔗 Read the full story here:

How to fail fast to scale product development | Eldison – Where legal meets tech When developing a new product, it can be difficult to stay on the ground and kill a feature (or the whole product) if it’s going in the wrong direction. But by doing so, you can save a lot of resources and focus on more promising features or products. To illustrate this point, we’re here to shar...

📬 Our April newsletter is out!

Did you make it through April Fools’ Day unscathed? No worries, we’re all about clarity here—no fooling around! As we jump into April, we’ll explore new terms important for startups planning to raise funds: drag-along and tag-along rights.

What insights can you expect?

📍 How drag-along rights speed up the company sale
📍 How tag-along rights support minority shareholders
📍 When founders benefit from those rights

Dive into the details here 👇🏼

Drag-along & tag-along rights | Eldison – Where legal meets tech Did you make it through April Fools’ Day unscathed? Good. No fooling around here - we’re all about clarity. Let’s use that spring energy and dive into some new investment-related topics, shall we? This issue of our newsletter explores another crucial fundraising terms: drag-along and tag-along...

🌟 Mastering Convertible Loan Agreements (CLA) with the best in the business!

This Tuesday, we co-hosted a deep-dive workshop laser-focused on the intricacies of CLAs. The expert panel included our Ondřej Stříbný, Jakub Čech from Allen & Overy Czech Republic, Ondřej Zemek from Sparring, and Ota Mach and Josef Kříž from KSB.

Together, we discussed key aspects of CLAs:
🔸 Who should be part of the CLA: Highlighting the importance of involving founders, shareholders and investors.
🔸 Conversion triggers and shares: Strategies for effective share conversion and calculations.
🔸 Capitalization and dilution: Addressing solutions for common issues in fully diluted scenarios.
🔸 Warranties and liabilities: Outlining the extent of warranties and the implications of their breach.
🔸 Founder obligations: Focusing on non-compete and lock-up clauses to safeguard interests.

Need help with understanding how the startup investment works? Connect with us! Our team is here to guide you through every step, ensuring your journey is smooth and successful. 🚀

🚀 🧮 Our valuation calculator for pre-revenue startups is HERE!

Are you planning for your next (or first) funding round but don’t know how to value your startup? No worries, our pre-revenue valuation calculator will help you out.

Here's why you'll love it:

❓No more guesswork. Our calculator uses a scoreboard valuation method, comparing your startup with peer companies in your industry and region

🇪🇺+🇺🇸 It’s a perfect fit if you’re a startup active in the US or Europe.

💪🏼 It’ll help you impress your future investors and boost your fundraising self-confidence.

👉🏼 Fill in this form to get your pre-money valuation estimate straight to your mailbox:

Startup valuation calculator | Eldison – Where legal meets tech Step into the future of ESOP management. Create your phantom plan fully digitally with the Eldison platform.

👀 Got ESOP? Shout it to the world! 📢

Working in a startup isn’t easy. You need to come up with creative ideas and execute them fast. That’s why it’s only fair when companies share their success with the team through ESOP. But in order for this to be a win-win move, you need to make sure everyone knows how ESOP works.

So, take a moment to talk to your team about ESOP. Here’s how:

👆🏼 Break down the legal lingo: out with the legalese, in with normal speak (our ESOP vocab will come in handy here: https://www.eldison.com/post/esop-vocabulary?utm_medium=organic&utm_source=facebook&utm_campaign=esop)

✌🏼 Visual examples: show, don't just tell, how the value of ESOP shares evolves over time (you can do this in a spreadsheet or use or Eldison ESOP platform for maximum effect)

🤟🏼 Q&A session: cover all the burning questions like "When will I get my cash?" or "What’s the value of my assets?"

Sounds like a lot of work? No worries! We've got you covered with a set of slides that explain everything your team needs to know. Just select your ESOP plan of choice and you're good to go.

🌟 Download them here: https://www.eldison.com/guides/explain-how-esop-works-to-your-team?utm_medium=organic&utm_source= facebook&utm_campaign=esop

Eldison Fill in the form and select the ESOP plan you are launching. You'll get a customized presentation to your needs. What’s included?

We're paralegals! ✨

Looking for a standout paralegal role in Prague? 🇨🇿 Join our team and dive into the startup and business law scene!

Here's what's in store for you:
🚀 Work with the top startups in the CEE region
🤝 Be a key support for our team & manage your workload independently
🎒 Leave your suit at home; we keep the vibe informal
👩‍💼 Get to know our senior partners closely; we value strong team connections
🤖 Embrace innovation with our tech-forward approach

Interested? Drop us a message here on LinkedIn or see the full overview here: https://www.eldison.com/career/paralegal-law-student?utm_medium=organic&utm_source=facebook&utm_campaign=legal