When we think about startups, the last thing that comes to mind are the legal regulations that will impact your new business idea. Especially when it comes to raising capital.
Andrea Messuti is a lawyer and partner at LCA, an independent law firm specializing in new technologies and social media startups. His objective on LCA is to bring specialized aid to start ups in this new field, given that there are still great misconceptions that need to be tackled in this area of expertise.
In this video, Andrea Messuti offers 3 pieces of free legal advice for startup development:
The main takeaways from the interview are:
1) To protect your product or service
“Is your idea protectable from the very beginning?”
Make sure you understand that ideas are an investment not only a cost. You need to make sure you overview the feasibility of your business idea from a legal standpoint.
2) To present the quality of your startup team
“How can you prove to your venture investors that your team is fully committed and it’s going to spend all their time and energy in the startup?”
Your venture capitalist wants to make sure your idea, and promises will be set into motion. The best way to prove this is with a fully committed team of individuals that will make sure the ideas become a reality.
3) To clarify your capital table
“Do you have proof and evidence to support your pre-money evaluation?”
Before you approach a venture capitalist, approach family, friends or State Grant Projects to fund your idea. Venture capitalist want to make sure your idea has been tested before, and that other people believe on it too.