This webinar is designed to unravel the legal aspects of funding which are critical to success. Tailored for startup founders this session will provide a comprehensive overview of the legal considerations inherent in a funding round. When: 2 May 2024, 10AM (GMT) Key Highlights  Negotiation Strategies Learn how to shape negotiations from the outset to achieve the most favourable outcomes. Regulatory Compliance Gain an overview of how the ‘financial promotion’ regulations relate to funding rounds. Terms Sheet Deep Dive Delve into the term sheet and understand why the detail is so important. Understanding Funding Round Structures Explore funding round structures,…

The UK is undoubtedly a good place to launch innovative technology. The UK has a goal to transform into a tech superpower by 2030 and is developing international partnerships across academia, government and industry to make this happen.  The UK is already ranked fourth in the Global Innovation Index for 2022 and ranked 12th in the 2022 Network Readiness Index, and it is renowned for a thriving tech ecosystem.   The “Flip Up”  This is why the UK has become an attractive option for foreign based tech startups to move their business to the UK via a “flip up”.  Flipping…

In the UK, convertible loan notes have become a popular option for startups and early stage companies looking to raise finance. These are financial instruments that allow investors to lend money to a company in return for the option to convert that loan into equity at a later date.  When an investor buys a convertible loan note, they are, in essence, lending money to the business, but when certain conditions are met, that money can then be converted to equity or shares. Typically, this conversion occurs when the company satisfies certain conditions, such as a new funding round or an…

Crowdfunding has become an increasingly popular form of funding for entrepreneurs with a good business plan, or early stage companies looking to take their business to the next stage of its development. In the UK, crowdfunding is well established and regulated by the Financial Conduct Authority (FCA). In this article, we will explore the landscape, and look at the pros and cons of using crowdfunding as a financial tool for a business starting out, or growing. What is crowdfunding? Crowdfunding is a way of raising money through the collection of contributions from investors through a crowdfunding platform. Examples include Indiegogo,…

One of the most important factors behind the success of every startup and scaleup is adequate funding. Without it, the business won’t be able to move to the next stage of its development. Fortunately, for businesses operating within the United Kingdom, there are plenty of support and UK startup funding options for a businesses with plans to grow. Here, we look at some of those options, as well as the importance of seeking sound legal advice throughout the funding process and the business lifecycle. Government UK Startup Funding Options When looking for business funding, the first place to look should…

In March 2023, the UK government launched the International Technology Strategy with the goal of transforming the UK into a tech superpower by 2030. In doing so, it promises to work closely with governments, academia and industry to create international partnerships with emerging science and technology nations, create jobs and opportunities for tech businesses across the country. This move should help businesses looking to launch innovative technologies in the coming years, but what other advantages exist for tech companies looking to launch products in the UK. Fostering tech excellence The UK is ranked fourth in the Global Innovation Index for…

Enterprise Management Incentive Schemes ( EMI Schemes ), offer significant tax benefits for both companies and their employees by granting the right to shares in the company to employees in the most tax-efficient way (geared towards attracting and retaining employees).  Now the Government has brought in changes to the EMI qualifying conditions, aimed at simplifying the administration of these schemes.  Would your business qualify? Request the EMI Eligibility Questionnaire using the form at the bottom of this page. What has changed and what has JPP Law done to adapt?   Several important changes are now implemented in JPP Law’s Share Option…

Wherever a business is in its lifecycle, funding is a critical factor in driving growth and, ultimately, success. Many businesses do this through venture capital. In this article, we explore the pros and cons of venture capital, particularly in terms of seed, scaleup and series A funding and how these forms of venture capital can provide the resources and expertise to maximise the potential for success. The Pros and Cons of Venture Capital Funding Advantages of venture capital funding In the earliest stage of any business venture, funding can be one of the biggest challenges. Securing a loan for an…

If you are planning to appoint a new director to work in your business who will also acquire shares in your company then, as well as drawing up a service level agreement to govern their employment, you will also need to consider whether you need to make any changes to your current shareholder agreement.

Did you know that employees received an estimated £480m in income tax and national insurance contributions (NIC) in the tax year ending 2021 from Employee Share Schemes - with EMI schemes forming the largest contributor to tax relief? EMI share schemes (Enterprise Management Incentives)  have clearly become a popular way of motivating, retaining and attracting employees in the UK, as they offer significant tax benefits for both the business and its employees. By allowing companies to grant options (the right to shares in the company) to qualifying employees in a tax efficient way, EMI option schemes are flexible and can…