The Greater Hub, a startup incubator based and driven by the SBM ITB, held a very informative Legal Coaching Session entitled “Legal Business Growth.” CEO and Founder of Legalku, Philosophi, shares knowledge about how legal aspects can be the primary key to building sustainable company valuation. Several startups supported by The Greater Hub attended this sharing session.
Philo mentioned that startups understand intellectual property rights in business, such as trademarks and copyrights. Philo underscores the importance of protecting this element of intellectual property rights in every business.
“Understanding intellectual property rights is a crucial first step in the business journey,” said Philo. “This involves trademarks, copyrights, and other elements that must be carefully understood and protected.”
Philo underscored the connection between the company and stock valuations, emphasizing the necessity of establishing the company’s foundation before undertaking a valuation assessment. Within this context, Philo elaborated on how commencing with modest shares can lead to heightened share value in the future. He introduced various share types, including common and preferred shares, and emphasized the importance of a robust founding agreement to preempt potential future disputes.
Furthermore, Philo delved into the bootstrapping phase and investments from angel investors, delineating the three common types of investments: direct equity investment, loan investment, and debt securities convertible into shares. He stressed the significance of a clear understanding of the desired investment type before accepting funds from investors to mitigate potential misunderstandings later.
Philo also shed light on the transparency of the relationship among company founders, investors, and related parties. Emphasizing the critical role of a strong and consistent founding agreement, particularly during the angel investment phase, he highlighted the importance of legal compliance in business operations. Philo likened a strong legal foundation to a swifter and more robust means of transportation toward achieving business goals.
The Greater Hub anticipates that this session will equip startups with valuable knowledge and insights. Grasping the legal aspects of business will serve as a valuable tool in their journey towards success.
