July Edition 2024

37 OurCrowd Full Raising Finance Interview In the current economic climate, what are the primary legal and business challenges startups face when seeking early-stage financing, and how can these be mitigated? Additionally, how have recent economic trends impacted the availability and terms of seed and angel financing? There are a several challenges in the current climate for startups seeking earlystage financing. Companies are struggling with negotiating a fair valuation and favorable funding terms, along with complex regulatory requirements which can change by industry and jurisdiction. Also, protecting their IP assets such as patents, trademarks, and trade secrets is more crucial than ever but can be costly and time-consuming. Investors these days are conducting a much more thorough due diligence before investing, and companies need to provide accurate and transparent financial records which creates a challenge in terms of information sensitivity. To mitigate some of those risks, companies need to perform thorough market research and financial modeling to justify valuations while engaging with experienced legal counsel to seek advice and negotiating the terms. They also need to work closely with IP attorneys to secure and enforce IP rights Tzahi Lati Associate Director, OurCrowd

RkJQdWJsaXNoZXIy MjgzNzA=