Startups

This guide outlines the key steps for foreigners starting a business in Nigeria, including company registration with the Corporate Affairs Commission (CAC), tax compliance, banking requirements, and sector-specific regulations.

VC: Funds growth, manages exits (M&A, IPO) & restructuring for returns. Seeks strong teams, large markets, innovation. Exits provide capital. Restructuring fixes issues. Impacts markets & finance.

Convertible notes: Early startup funding. Loan converts to equity in future (funding round). Postpones valuation. Features: interest, maturity date, valuation cap, discount. Unlike SAFEs (no debt). Good for early stage but understand dilution risk. Seek legal advice.

Dilution: New shares decrease your ownership %. Necessary for startup growth funding. Occurs via investment, options, debt. Affects founders, staff, early backers. Reduce impact with smart planning. Use tools like Capboard to calculate.

Restructuring operations: Streamline processes, cut costs, boost efficiency. May involve workflow changes, technology, or workforce adjustments. Goal: improve agility, financial stability, growth. Plan carefully, communicate clearly, manage change effectively.

Exit timing: crucial for profit in trading, investing, business. Analyze markets, set goals, manage emotions. Use stop-loss, take-profit, percentage exits. Adapt strategy. Avoid holding too long or selling too early. Data-driven decisions are key.

Kenya patent: Secure your invention’s rights. Must be new, inventive, usable. Apply via KIPI with specifics. Process involves checks, publishing. Standard patents: 20 years. Utility models: 10 years. Seek expert help.

Registering in the US: Choose business structure (LLC/Corp), select state (tax benefits), register name. File paperwork, get EIN, open US bank account. Non-residents welcome. Costs vary by state. Legal protection & funding await.

Valuation cap: tops SAFE/note conversion value, aiding early investors. Negotiate with traction data, market research. Methods: asset, DCF, comps, scorecard, VC. Aims for fair founder/investor balance.

Nigeria: Africa’s startup hub (3,360+). VC firms (Future Africa, EchoVC, TLcom) drive growth in fintech, agritech. Choose wisely: sector, track record, value. Funding hurdles exist.

UK patents grant exclusive rights for inventions (new, inventive, industrial application) for up to 20 years. Registration involves IPO filing, search, examination, and fees. Consider a patent attorney. UK patent = UK protection only.

Visa gift cards need activation for security and use. Activate online or by phone with card details. Vanilla Visa and Australia have specific steps. Can act like debit cards with PIN.

Startup equity attracts early hires when cash is tight. Offer stock options, RSUs, etc., with vesting (e.g., 4-year with 1-year cliff). Reserve 10-20% equity pool. Early employees get more (1-3%). Document in a cap table. Understand tax implications. Clear contracts are key.

Swiss startup funding: Pre-seed/Seed for early stages. Series A-E drive growth (A: fit, B: scale, C: expand, D/E: IPO prep). Funding amounts rise. Investors seek growth, market. Alternatives: bootstrapping. Funding doesn’t guarantee success.

Phantom stock in Switzerland: Rewards employees with cash based on stock value, no actual shares. Avoids dilution but taxed as income. Consider cash flow & admin. Legal/tax advice essential.

Key deal docs: Term Sheet (initial terms), Letter of Intent (preliminary agreement), Purchase Agreement (legally binding). Understand their roles and when to use them for successful negotiations in Switzerland. Seek legal counsel.