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How to Value Shares in a Startup Canada

Valuing Startup Shares Canada

When you create your startup company, it is often with the expectation that your business will grow both financially and in size, eventually being able to issue shares as a private company

For that to happen, you may need investors and partners to help you at the start of your business. Investors, partners, and individuals who all contribute either skills, capital, ideas or assets can effectively boost the growth and development of your company. 

In return for their added value, it is often a common and appealing option to give these individuals shares in your Canadian startup instead of paying them in cash.

To do so, you will need to consider the value of your shares before you even incorporate your business as you will need to state your authorized shares at the time of incorporation.

The main question is: how do you put a value on your shares? We provide you with answers with this overview on the basics: what to consider, what you should know, and some general methods on how to determine that price value.  

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How To Start An Online Business In Ontario [Legal Guide]

Start Online Business

It is not uncommon these days for employed workers, students, and even small business owners to have other side jobs or other business projects. This is especially true during times of economic uncertainty when people need another source of income and start asking questions on how to start an online business in Ontario.

You, yourself, may be considering the idea, and with good reason. Online businesses are likely to continue earning income when your physical business or job is threatened. In addition, there are unlimited types of businesses you can start online.  

The only obstacle that may be stopping you is the business aspect. How do you start your business online? What paperwork do you need to file? How do you manage online revenue? How do you pay yourself?

In this article, we cover some general and legal guidelines on how to start a business online. 

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Non Circumvention Agreement Ontario

non circumvention agreement

What is it? A Non Circumvention Agreement is a legal agreement between parties that want to prevent the misuse of confidential information that they have shared with each other.  A common scenario involves a disclosing party (“Disclosing Party”) providing their confidential customer or supplier list to the receiving party (“Receiving Party”).  This kind of agreement … Read more »

How To Raise Pre Seed Funding

pre seed funding startup

When starting a tech business, the biggest hurdle any entrepreneur will have is financing, especially at the very beginning. There are specific rounds of funding for startups. In the early stages, you want to focus on pre seed, seed and series A funding. Each round has its advantages as you progress and grow with your business.

The pre seed funding stage, for instance, is time consuming and can be difficult to attain from investors, but it is highly valuable for startups in getting their foothold in the industry. Though the process can usually take 6-12 months, the development, mentorship and financing that can result from a pre seed funding round are well worth it when secured.

Below, we focus on the basics about pre seed financing in Canada.

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When Do You Need a Financial Lawyer?

financial lawyer

Corporate finance law is a part of corporate law and every business that requires funding, needs a corporate financial lawyer for that matter. Financial lawyers have experience with investment banking or at least they cooperate with investment bankers to close the deal. Whether you want to acquire or merge with another company, issue securities, go … Read more »

A Step By Step Guide To Running A Tech Business

Taking Research Business Notes

Launching a tech startup isn’t for the faint of heart. It requires a multitude of stages, hard work and determination. Given the challenges involved, starting your own company can be daunting. That’s why we always recommend getting help and advice wherever you can to get perspective and background that can make things easier. We always … Read more »

Private Placement Financing

private placement financing

We have already discussed the differences between seed capital and venture capital. If you are starting a business, the cash you are collecting is called seed capital. What follows seed capital are those funding stages: series a, series b, series c funding. If you are not very informed about the early stage of investment, here … Read more »

How Are Conciliation, Mediation And Arbitration Different?

Mediation arbitration Comparison

Although mediation, conciliation and arbitration have the same purpose, the process differs in the level of formality, responsibility and improvisation. In each case, a third party is involved in the dispute resolution process between the parties. Mediation is focused on dispute resolution regardless of the outcome of the relationship between parties, whether they will conciliate … Read more »