Navigating the Legal + Financial Landscape of your Startup
This week we held our monthly #SaaSChats over on twitter @LSPARKGlobal and it was all about Navigating the Legal + Financial Landscape of your startup
Welcome #SaaSChats Panelists 👋 🤩
Tell our other panelists + our guests a little bit about yourselves before we dive into Q1@ChikeiYeung@chaserirwin@Matt_Wanford@NikRassk
Trevor Kennedy @LoganKatz_LLP@laithmshukri@MikeLaginski@leolax pic.twitter.com/QuvutExBSI— L-SPARK (@LSPARKGlobal) October 6, 2021
If you’ve never followed along with one of our monthly chats, you’re missing out! They are fast-paced, fun, and full of informative info in QUICK + DIGESTIBLE snippets! Not to mention it’s coming from a panel of experts, but we’ll get to that in a second.
Each chat has a topic, but we find that sometimes sub-themes show themselves throughout the chat. The theme of this chat was definitely: RESOURCES. Our panelists shared toolkits, contacts, programs – all in addition to their advice and expertise! This is not a recap you want to miss, in fact I’ll go as far as saying this is one that you’ll want to bookmark! (Pro tip: scroll to the bottom of this blog for a list of all the resources that were shared during this chat!)
Let’s meet the experts behind the advice:
- Chikei Yeung (@ChikeiYeung) Senior Account Manager, Technology Industry, BDC
- Chase Irwin (@chaserirwin) Partner at Dentons LLP
- Matt Wanford (@Matt_Wanford) Counsel, Osler, Hoskin & Harcourt LLP
- Nik Rasskazovskiy (@NikRassk) Director, Technology & Innovation Banking, National Bank
- Trevor Kennedy (@LoganKatz_LLP), Partner Logan Katz
- Laith Shukri (@laithmshukri), Sr. Market Development Manager at Silicon Valley Bank
- Mike Laginski (@MikeLaginski) Director at L-SPARK
- Leo Lax (@leolax) Executive Managing Director at L-SPARK
We’ll recap the questions below, but we encourage you to follow the link on each question to be taken over to Twitter to get the full thread of responses (don’t forget, there are tons of resources in the full thread so it’s definitely worth checking out!)
Let’s dive in:
A1 NDAs help protect the sensitive pieces of info about a company. I’ve seen arguments for and against when approaching investors. I totally understand why a founder would want to sign one. End of day its about respecting their PoV around the info they share. #SaaSChats
— Laith Shukri (@laithmshukri) October 6, 2021
A2 Craft your narrative and invest the time to create a compelling pitch deck and story for your Company! Focus on good corporate hygiene and get organized early. Focus on DD risks that you can control – cap table integrity / IP ownership / scalable legal docs. #SaaSChats
— Chase Irwin (@chaserirwin) October 6, 2021
A3. The IP strategy can limit unexpected infringement claims that can be distracting to the business. In an asset light industry – this is the most valuable ‘asset’ next to human capital IMO. Check out @StratfordMgrs – they have a good track record.
— Chikei (@ChikeiYeung) October 6, 2021
A4 start with the basics. Encryption, firewalls, employee agreements covering privacy and non-disclosure of company, employee and customer data. Regular off site backups of your IP and key system data….seriously! Store system passwords with trusted source such as your legal team
— mike laginski (@MikeLaginski) October 6, 2021
A5 Be aware of foreign filing requirements from day 1. It is natural to sell below the border but be aware that there are sales tax issues and sometimes corporate tax issues regardless of the fact that you have no physical presence. #SaaSChats
— Logan Katz LLP (@LoganKatz_LLP) October 6, 2021
A6: Understanding and watching your cash balance, burn rate and runway is critical. KPIs that you select should reflect the key drivers of your business, such as SaaS metrics. Tracking them will help you manage your business and talk to investors. #SaaSChats
— Nik Rasskazovskiy (@NikRassk) October 6, 2021
A7/ Capital structure – i.e. a cap table describes who are the ‘owners’ of your company, i.e. who are your shareholders. As a founder you play a number of roles. Visionary (product related), the CEO (leader of the company), a shareholder, ( economic benefits) and director
— Leo Lax (@leolax) October 6, 2021
A8 L-SPARK has a great legal and financial expert network for startups. These firms get it that startups need help often before the revenue is flowing and have startup packages to reflect this reality. Their focus is helping build a vibrant startup ecosystem. #SaaSChats
— mike laginski (@MikeLaginski) October 6, 2021
A9 Resources are stretched thin for early stage startups, but getting the proper structure in place early is critical. Firms in this space will have cost-effective programs to provide runway. Get the most out of your legal, accounting and advisory teams! #SaaSChats
— Chase Irwin (@chaserirwin) October 6, 2021
Here are some of the amazing resources our panelists shared during this chat:
- Why your business needs an intellectual property strategy, BDC
- What does a perfect pitch deck look like?, PwC
- How ISO 27001 certification can help secure your business’s information, BDC
- Canadian vs. US Incorporation – the Canadian Startup Dilemma, Dentons
- Tactical advice on building a tech startup, Elizabeth Yin
- Financing toolkit for tech businesses, BDC
- Startup Toolkit, MaRS
