Startup is a company founded by a person or a group of people, who exercise partial or full control over its operation.
Startups usually pursue the goal to introduce a new product or an idea into the masses and establish its presence on the market they seek to enter and compete on.
Founders of startups have to consider a number of important factors that would guarantee their chances for success. Founders’ profiles and competences are very important. They can include the jurisdiction a company wishes to be incorporated in, an initial capital, a business model, a product, and different stages of entering the market, as well as possible obstacles to overcome.
Founders should pay great attention to the jurisdiction as it impacts how different regulations of labor law and tax law will be met. EU legislation has chosen a common approach towards creating legal frameworks for security and equity token offerings, e.g. Maltese Stock Regulations are considered to be the most favorable for both startups and accredited investors.
Startups need to outline a basic working concept and revenue return mechanisms for target audience in legal documents presented to prospective investors.