Dragon Innovation_Legal Resources for startups
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Hardware Startup Realities: The good, the bad, and the legal

Entrepreneurship can be a wild ride. People start companies because they have passion and a big idea—but they may lack knowledge about the legal processes involved in forming and growing a company. So how can an entrepreneur best determine when an attorney is needed and how they should work with that person? Questions often arise regarding whether a task is a standard or routine, or if it’s something more complex that requires tailored guidance. Every decision made about company structure, governance, and ownership brings varying levels of risk and cost.

Shoobx was created to empower the entrepreneur to understand more about their business and modernize the relationship between an attorney and his or her client. Entrepreneurs are busy building their companies, and they want to avoid unnecessary fees for legal services. Attorneys want to provide value to their clients by focusing on strategic guidance over standard documents. The Shoobx platform lets entrepreneurs leverage technology to more efficiently consume legal services, and it helps the attorney be the entrepreneur’s strategic counsel and go-to resource for complicated matters.

So how does Shoobx change the way companies address legal complexity? It starts by guiding companies through the incorporation process—allowing the entrepreneur to set the authorized and issued shares for the company, preparing bylaws, and establishing a founder agreement. Following incorporation, companies can establish a stock incentive plan for issuing options and shares to employees, advisors, and board members. Hiring employees and onboarding them becomes a breeze with Shoobx HR functionality. Early stage financings are also simplified and can be executed more efficiently; SAFEs and convertible notes can be prepared, circulated to investors and signed, all within Shoobx.

As each of these processes is kicked off, all interested parties can be granted access to review and sign the required documents. Once executed, the documents are stored securely in the Shoobx data room. With Shoobx, all the company’s information resides in the right place, for all the right people. The platform is completely interconnected, so updating a value in one place will trigger corresponding updates in the entire system and update any other related documents and reports. So entrepreneurs get to manage their company with greater efficiency and collaboration, which gives them more time to capitalize on their passion for that big idea.

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This blog was provided to us by our friends at Shoobx. For all things legal, they are a great resource for startups!

 

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