Newsroom

    Startup Securities eBook

    Author //

    • Brad Vinning Partner
      Phone: 61 7 3001 9235
      Email: b.vinning@clarkekann.com.au

    STARTUP SECURITIES is an easy to read primer that aims to acquaint entrepreneurs and small business owners with the world of startup funding. In its four sections you will find information about the tools entrepreneurs have at their disposal to raise capital and to motivate and reward investors or employees.

    In the first section, FINANCING AND INVESTING, we explore the fundamentals of the relationship between new businesses and investors. We go over the three basic types of securities startups use to raise funds – Bonds (or generally loans and debt), Shares and Options.

    We cover these specificities and explain briefly what value they bring to the holder and the issuer of the security. This is followed by a comparison of finance in private versus public markets.

    In the second section, STARTUP FUNDING, we go over the drawbacks and benefits of financing your company with debt or equity.

    We also cover a middle ground option presented by financial instruments called convertible notes.

    The third section is dedicated to the topic of using SECURITIES AS COMPENSATION. We discuss the motivations behind this practice as well as its appropriateness in different situations.

    In the final section, ROADMAP, we touch upon the practical issues of determining your funding needs, creating a fundraising strategy, choosing between passive and active investors and possibly motivating them with securities based compensation.

    After reading this eBook, you will have a solid grasp of the basics of funding your company.

    Most importantly, you will have an understanding of the types of financial tools used for startup funding and the shortfalls and benefits of using each one in different situations.

    ClarkeKann is a commercial law firm with offices in Brisbane and Sydney. Our expertise covers commercial & corporate transactions, employment & IR, financial services, litigation, risk management and insolvency, property transactions and resources projects, across a range of industries. For a full list of our legal services, please visit our website at www.clarkekann.com.au. To update your contact details or unsubscribe to any of our publications, email us at ck@clarkekann.com.au

    This bulletin is produced as general information in summary for clients and subscribers and should not be relied upon as a substitute for detailed legal advice or as a basis for formulating business or other decisions. ClarkeKann asserts copyright over the contents of this document. This bulletin is produced by ClarkeKann. It is intended to provide general information in summary form on legal topics, current at the time of publication. The contents do not constitute legal advice and should not be relied upon as such. Formal legal advice should be sought in particular matters. Liability limited by a scheme approved under professional standards legislation. Privacy Policy
    < Back to Articles

People

Our greatest asset is our talented and committed people – they enjoy what they do and value the opportunity to work together and with our clients. Our people are from diverse backgrounds and approach their work with intellectual rigour and enthusiasm. Find out more

Expertise

ClarkeKann has received the Australia-Taiwan Business Excellence Award for our efforts promoting and advising on most of the major investments from Taiwan into Australia over the last 20 years. Click below for more details about Foreign InvestmentVIEW MORE

Subscribe

Click below to subscribe to our publications and to receive the latest news VIEW MORE