Formation

Emphasize Value + Potential Value

The right attention from the right investor can translate into much-needed financing for your startup. When you communicate your business idea effectively and clearly while highlighting its potential impact on market share, it will resonate with financial backers. Effective communication involves both active listening and the ability to break down an idea to its simplest and most coherent form. Investors do not have the same intimate, working knowledge about a product or service that you do, so you must relay the value that your business proposes in a way that differentiates it from competitors.

One way to do this is to look beyond the end user. Emphasize the impact your business idea will have on other industries and markets outside of those for which it was initially conceived. When a product or service has potential to capture market share from direct and indirect competitors, it will not take long for investors to take notice. To capture investor attention, make sure you emphasize everything about your offering that can translate into a significant return on their investment.

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When Should I Form a Legal Entity?

As startup lawyers, we often receive inquiries from passionate entrepreneurs and founders seeking guidance on when they should consider taking their side projects to the next step by forming a legal entity. Forming a company is a “crossing the Rubicon” moment for any startup. It’s an essential step…