Investment Project Legal Support

Investment is an important component of any business, the basis of its development. For example, for most startups the main business goal is to find an investor, since this is a necessary condition for scaling up.

Investments inflow from various sources; it depends on both: the stage company’s development and the experience of the founder of business.

Here are just a few examples of investment sources:

• Equity value of the founders;

• Finances of their acquaintances;

• Private investors;

• Investment funds;

• ICO

• Crowdfunding;

• Deposits that are borrowed from financial organizations, etc.

Equity value of the founders. With the apparent simplicity of this method of investing, a number of factors should be taken into account. For example, questions from tax authorities about the source of income (if significant funds are invested) or the correct execution of these funds in order to avoid future friction between the founders. In practice, the initial investment of the founders often becomes a stumbling block and eventually leads to conflicts between the founders, unless documents that govern these relations were not properly executed at the beginning.

Finance of their acquaintances. A common way to get an investment for a small business. In this case, only a debt deal should be issued between individuals. However, this is not enough if we consider it in the context of funding the economic activities and in the future, when a dispute arises, it takes a long time to find out both the origin of these funds and the fact of the borrowing. One of the solutions is to put a lien on a share of the enterprise.

Private investors. Typically, these are wealthy people who are employed or businessmen who live on dividends from a business. They have an interest in investing surplus financial resources and getting profit. In this case, it is always about buying a part of the enterprise’s share.

Investment funds. These are companies specializing in investing in high-risk projects. As a result, they expect high margins if successful. This require a big negotiation process, legal audit of the so-called due diligence, share transfer, etc.

ICO. Alternatively, Initial Coin offering - the initial placement of coins. You can get investments by launching your own cryptocurrency on the market, or placing the cryptocurrency on the exchange. This is a long and not cheap but quite an effective way. Beliaevs & Partners uses the Singapore Exchange in such cases.

Are you an investor or do you want someone to invest in you? We will help you to choose the right path for investment flow and help you to complete the whole process of the investment transaction.