Anni Säär on Why Good Rules Make Good Friends

While having a concrete problem to solve is primary, it is important to not neglect getting the right team. 

The founding members of a team and how the relations between them are governed is important for the success of your startup. This includes ensuring sustainable growth, reaching markets, having appropriate expertise and appealing to investors. Annabel discussed with Startup Wise Guys’ Legal Officer, Anni Säär why team formation is so crucial for a successful startup.  

Topics explored include: 

Why should you consider your team’s legal relationship from the start? 

• How do you create legal relations or rules to govern your team?
• What is a Shareholder Agreement (SHA)? 
• Examples from real startups on why not having a SHA in place can break the startup. 
• What is reverse vesting? 
• What is a cliff? 
• What should you look out for in agreements between you and an investor? 
• Is it important to carry out due diligence on an investor? 
• And why Anni says “you have to treat your startup as you would treat a marriage.”

Savvy by Sparring is a show where we reveal the stories founders, investors and other startup ecosystem players face when they do not consider legal questions at an early stage. Get your startup off the ground with business inspiration, meshed with legalities, including how startups incorporated, protected their works and raised funds in a (legally) smart way. 

You can find Sparring's Startup Playbook which supports the show here: https://playbook.sparring.io/