SPSTARTUP & INVESTMENT
The funding of ideas, businesses and projects is a centuries-old concept. However, with global communication separated by mere seconds, there has never been a time of such ephemeral entrepreneurship, explosion of ideas, and burst of innovation.
At SPS, we know that because when everyone else was using typewriters, we started using computers. Today, we have a solid track record in these operations, both domestically and abroad.
Did you know that Henry Ford was financed by Alexander Malcomson, a Scotsman who in 1880 immigrated to Detroit when he was just 15 years old and made his fortune in the coal business? In 1902, Ford asked him for help to launch his business and convinced Malcomson to invest $3,000.00 in what would become Ford & Malcomson. The terms of this investment agreement would have been reduced to writing in a simple document signed before a single witness.
Today, the vast majority of investors start any negotiation, regardless of its value, by means of a Term Sheet.
For the Founders of a project in search of securing the investment they need to develop their business, this Term Sheet is a document of vital importance and its terms should be carefully weighed before any decision is made to go ahead with the investment agreement which could represent countless constraints in the future.
Put quite simply, a Term Sheet is a summary of the conditions under which an investor is willing to fund the project, in return for which the Founders must accept the terms and conditions of said investment proposal.
It is, therefore, more binding than a simple letter of intent and that’s why greater care should be taken in the analysis, negotiation and acceptance of the document.
A fundamental rule to be followed when broaching these Term Sheets is that you should never underestimate the importance and the value of its clauses or conditions as any one of them, despite appearing to be more or less standard in these types of investment operations, may have a very significant impact on the future expectations of the Founders.
At SPS we understand the challenges and constraints the Founders of a Start-up face, as well as those of the investors who wish to partner with them. We are always excited at the prospect of being able to participate in ambitious projects which we recognise as having high growth and success potential.
We understand that launching and growing a Start-up, just as building bridges with the investment, at a stage when resources are scarce, requires flexible lawyers who are available to invest in a long-lasting partnership.
We design solutions that quickly and cost-effectively address a range of legal issues which we have identified as being critical for these kinds of projects.
The responsibility for the performance of all stages lies with the team dedicated to these types of operations, in which two coordinating partners are directly involved.
We deliver Innovative Solutions. That´s what we do and who we are!
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