Technology start-ups are powered by bright minds and relentless ambition. Whilst this makes them hotbeds of innovation, they frequently lack the time and resources to protect their positions properly at the outset. This lack of protection when looking to raise capital and grow their businesses can carry significant risk for young companies further down the line.
This year, and for the first time, Macfarlanes' trainees have all attended an afternoon of seminars at Tech Nation, the industry body which aims to promote growth of the tech sector in the UK. Whether a start-up is in fintech, healthtech, media or any other sector, they all face similar challenges in areas such as business structuring and corporate finance.
London is one of the most desirable places to start a technology company, partially due to the UK's outstanding infrastructure and low cost of incorporation. This is reflected by the country's tech sector expanding 2.6x faster than the rest of the UK economy. London is the epicentre of this growth and is home to some of the most ground-breaking technology in the world, such as Google's DeepMind - a global leader in artificial intelligence based in Kings Cross.
Thinking about the exit will help you set up the beginning — a proper constitution, tax planning up front if you think you’re going to be the next unicorn, [and] a sensible structure. Work out the end and then the staging posts on how you’re going to get there