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Category Archives: Startups

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Funding your Start-Up: One Clause That Could Cost You Your Start-Up

Posted in Startups

Venture Capital firms (or VC’s) often invest in early-stage start-ups with uncertain valuations. The terms of a VC’s investment will often be heavily weighted in favour of the VC and may include downside protection. This means that the VC’s investment will be protected in the event that the valuation of your start-up decreases in subsequent financings. One common method used by VC’s for downside protection is known as a “ratchet” clause. A “ratchet” clause is an anti-dilution clause that works to protect, and in some circumstances can even increase, the VC’s proportionate ownership of your start-up, if the value of … Continue Reading

Funding your Start-Up: Stages and Types of Financing

Posted in Startups

Stages of Financing

There are a number of issues start-ups need to consider to be able to effectively raise capital. Focusing your efforts on developing your products or services and establishing strong and efficient leadership are essential in preparing your start-up for the increased scrutiny of prospective investors. In addition, entrepreneurs often overlook or fail to appreciate how important it is to structure initial rounds of financing with later rounds (and more sophisticated investors) in mind.… Continue Reading

Forming your Start-Up: Options for Business Entities in Canada

Posted in Startups

There are a variety of business organizations that can be used to operate your tech start-up in Canada. Although many businesses are operated through a corporation, it is important to understand other forms of business organizations. As there are significant tax, legal, financial and practical implications, selecting the right business organization for optimizing your business’s chance for success. The following are three of the most commonly utilized business organizational structures for a start-up business in Canada.… Continue Reading

Thinking of Buying or Selling a Fintech Target? Due Diligence Issues Unique to Fintech M&A

Posted in Fintech, M&A/Finance, Startups, Virtual Currency

Although many of the same considerations related to the acquisition or sale of any technology company apply, regulatory and compliance considerations are key in the fintech space.

Fintech M&A activity, in both the Canadian market and globally, is expected to be on the rise over the next few years. In its 2016 Report, FinTech: Prepare for a Wave of M&A, UK-based investment bank FirstCapital, predicts that fintech M&A deal flow will increase “as financial incumbents look to catch up with widespread innovation from new entrants, the internet majors scale up in financial services and the technology/software majors add new … Continue Reading

McCarthy Tétrault and IP Osgoode Co-host FinTech IP Symposium

Posted in Intellectual Property, Patents, Startups

On March 9, McCarthy Tétrault and IP Osgoode jointly hosted a symposium titled Effective IP Strategy to Drive Innovation in the Financial Services Sector.  This event brought together academics, business people, and lawyers for a discussion of how technological change is transforming the financial service sector and pushing incumbents and disruptors alike to think carefully about their IP strategies.

After introductory remarks from Barry Sookman and Giuseppina D’Agostino, the event set a brisk tempo and covered a lot of ground in two short hours.  The discussion was organized around three panels.

The first panel, moderated by Matt FlynnContinue Reading

BC Government Announces New Tech Strategy and $100 million Venture Fund

Posted in Startups

The Province of BC announced today the launch of a new BCTECH Strategy aimed at supporting growth in the tech sector, creating jobs and strengthening a diverse economy.

The first pillar of the comprehensive BCTECH Strategy is a focus on capital, including a $100 million venture fund announced today. The BC Tech Fund will provide access to more capital for BC’s entrepreneurs and technology start-ups, in particular at the early venture capital stage, enabling them to bridge the gap between seed and angel financing and later stage growth capital.  … Continue Reading

Prepare to Launch – Part 1: Insights from Vancouver Startup Week

Posted in M&A/Finance, Startups

McCarthy Tétrault LLP was delighted to recently host a sold-out crowd at our feature event as part of Vancouver Startup Week, a week-long celebration of Vancouver’s unique entrepreneurial spirit and innovative technology community.

Prepare for Launch”, an interactive panel moderated by McCarthy Tétrault’s Genevieve Pinto, featured guests Eric Bukovinsky, Principal, Yaletown Venture Partners; Ryan Spong, Co-Founder & CEO, Foodee; and Spencer Thompson, Founder & CEO, Sokanu, among others.… Continue Reading