Thomas Colmer has strong interest and experience in Financial Services, FinTech, Payments, Health IT, Security Software, AdTech and Life Sciences & Healthcare. He has a unique perspective from industry and deal experience in what works and what to look out for as well as excellent links into VCs.

1. Tech Start Ups – some legal thoughts
27 May 2014

2. osborneclarke.com
Tech start up funding considerations
• LLP – taxed transparent partnership (cf. PAYE, NIC), 2 (designated)
members, limited liability, no capital maintenance, no formal
constitution/disclosure at CH
• VDR – organisation, eye on ball vs prize
• Equity/debt – convertible? security? redeemable? conversion?
• Liquidation preference – sale/exit, ?x, catch up? cap?
• Anti-dilution – full/weighted average? pay to play?
• Exit – intentions?
2

3. osborneclarke.com
Tech start up funding considerations
• Warranties, disclosure, limitations
• Board – right to appoint? observer? growth? chair's casting vote?
quorum frustration? committees e.g remcom? indemnification, D&O
• Information – who? what? frequency?
• Business – what? budget/business plan? name? IP?
• Negative and Positive covenants – Insurance? Auditor? compliance
generally
• Consent rights – threshold? board/investor? share capital,
constitution, funding, M&A, indebtedness, encumbrances, finance
leases, guarantees, capex (growth de mimimis?), key staff, non-
ordinary course and related party transactions
3

4. osborneclarke.com
Tech start up funding considerations
• Restrictive covenants – who? what? competition, solicitation
(suppliers, customers, staff), confidential information, duration?
• Options – tax, schemes, valuation, dilution, cap table
• Transfer - pre-emption (for all?), deeds of adherence, compulsory,
restrictions
• Good/Bad leavers – full value? vesting? death? family? Intra-group?
market value? valuation
• Drag-along - %?
• Tag-along - %?
• Dividends – policy? distributable reserves? (cumulative) preference?
• Other issues - registration rights, EIS/VCT clearance, etc.
4

5. Questions?
Thanks - Please get in touch
Thomas Colmer
Osborne Clarke
Thomas.Colmer@osborneclarke.com
T +44 20 7105 7276
M +44 7887 691 541
Thomas.Colmer@osborneclarke.com
Thomas.Colmer@osborneclarke.com
clarke.com
[insert photo here]
Height = 5.39cm
Width = 5.81cm

6. Questions?
Thanks - Please get in touch
Thomas Colmer
Osborne Clarke
Thomas.Colmer@osborneclarke.com
T +44 20 7105 7276
M +44 7887 691 541
Thomas.Colmer@osborneclarke.com
Thomas.Colmer@osborneclarke.com
clarke.com
[insert photo here]
Height = 5.39cm
Width = 5.81cm