Startups and Business Formation

Starting a company can be a whirlwind of excitement, adventure, opportunity, and triumph. After putting in so much effort and laying everything on the line, the last thing you want is a poor legal foundation dragging you down.

It’s tempting to put off legal “housekeeping” in order to lower costs and increase speed. But the legal foundation is easily one of the most important elements of any startup. If you haven’t addressed foundational questions before a problem arises, it can cause significant issues that slow the growth and success of your business later down the road. 

We work closely with you to create effective solutions at each stage of your company’s growth, ranging from initial formation filings and agreements to capital raising transactions. 

Key legal issues for startups include:

  • Choosing and forming the right business entity for your team’s goals
  • Equity splits between founders, e.g. shareholder and voting agreements
  • Corporate governance questions such as membership on a board of directors
  • Protecting intellectual property ownership and rights

Next-stage issues include:

  • Incentive/ Equity compensation for executives employees: to grant equity or not to bother?
  • Management of stock option plans: ISOs, NSOs, or none of the above?
  • 409A valuation questions
  • Contract drafting and negotiation, such as customer and supplier agreements
  • Strategic partnerships, cooperation and development agreements
  • Bringing on new partners / executive officers
  • Shareholder/equity member buyouts and employee exits
  • How to manage rights of first refusal, right of first offer, drag-along, tag-along rights, and the like.

Fundraising and exit issues such as:

  • Preparing for, negotiating, and closing financing from seed, angel, and venture capital investors
  • Securities compliance and state blue sky laws
  • Strategic combinations and restructuring
  • Acquisitions and departures

General commercial contracting

Foundry Legal provides general corporate representation to clients at various stages in their development.

We represent clients in Colorado and across the United States on all types of business matters, including:

  • Licensing and technology platform agreements
  • Service and supplier agreements
  • Contract and entity joint ventures, LLC agreements
  • Agreements for the purchase of goods and services
  • Distribution and vendor agreements; manufacturing agreements 
  • Shareholder agreements, partnership agreements, and operating agreements
  • Asset / equity purchase agreements and related M&A transactions
  • Partnership breakups, buyouts, and settlement of disputes
foundry legal

good legal is good business

Who says the legal stuff has to be so stuffy?

Our practice is about doing legal a little bit differently…