The Equity & Fundraising Mistakes Founders Need to Avoid | Guy Kaufman, Vestd

What should founders get right before approaching investors? In this Startup 2 Standup guest speaker session, Guy Kaufman, Head of Growth at Vestd, talks through some of the most common mistakes he sees startups make when setting up share schemes and preparing for investment. Guy covers: ● Why informal promises of shares can become a serious problem ● Why sweat equity should always have conditions attached ● Vesting, cliffs and good leaver/bad leaver provisions ● EMI options and alternatives ● Growth shares and how they can work ● Why your Companies House records and cap table need to match ● What investors now expect to see before investing ● Why traction has become increasingly important ● How early-stage founders can think about valuation ● How much equity you may need to give away ● Giving equity to advisors ● Why investors often want an employee option pool in place One of Guy’s strongest points is that delaying the formalisation of equity can create tax issues as the value of the company increases and unexplained or undocumented equity promises can also raise red flags during investor due diligence. A very practical session for any founder who is raising investment, considering giving equity to employees or advisors, or simply wants to make sure their company structure is ready for future growth. Want to learn more about Startup 2 Standup? Startup2Standup is a founder community where founders can openly discuss the challenges of building a business and learn directly from experienced founders, investors and specialists. www.startup2standup.com #Startup2Standup #Startups #Founders #Fundraising #Investment #Equity #ShareOptions #EMI #GrowthShares #CapTable #VentureCapital #AngelInvestment #Entrepreneurship #StartupFunding