Silva Lopes Lawyers offers specialized legal services for startups, technology and innovation, being an official partner of Associação Gaúcha de Startups (AGS) and Tecnopuc/PUCRS (elected the best technology park in Brazil). Thinking about the needs of a startup, we formulated a legal advice plan for startups, called Startup Plan.
Startup Plan: A monthly plan that includes business consulting and legal advisory, to act in extrajudicial needs in the areas:
- Business Contracts (National);
- Private Society (Ltda.); e
- Intellectual Property.
The extrajudicial legal advice was created to provide guidance on daily business activities of a startup, among them:
- review and elaboration of Terms and Conditions;
- review and elaboration of contracts and business unbound;
- (re) corporate structuring;
- legal analysis of business operations;
- investment inflow;
- “divestment” operation;
- privacy policies;
- trademark registration and protection;
- technical advice;
- legislative clarifications;
- jurisprudence consultancy;
- notifications; and
- legal aid in complex negotiations.
All services described have no limit of demand. Here we contemplate startup’s daily business needs.
The services included in the Startup Plan were carefully selected through plenty experience on legal needs, assisting hundreds of startups during the years of practice.
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What is a Startup?
A startup can be conceptualized as a “project in search of an innovative, replicable and high growth business model”. Thus, like Amazon itself, it is very focused on revenue for its financing and on the growth potential, for having a scalable product or service. A small traditional company, on the other hand, is much more focused on the initial profitability of the business and does not have such an expressive and rapid growth forecast.
This is one of the big reasons that a lot of startups operate in the technology industry. It turns out that technology will help a lot so that the business model is scalable, without increasing costs in the same proportion. However, being a technology company is not a prerequisite for being a startup.
Another point where they will differentiate is in the product or service they offer, a startup seeks to present to the market something disruptive, innovative, that solves a current problem, thus delivering more value to its consumers. While a small company will normally sell products or services better known to the population.
Taking into account these distinct characteristics that, hardly, a startup will not go through one or more rounds of investments, which come from people who were not part of society at first. This is because, unlike the small company, which already has a traditional business model, organized and validated in the market, the startup needs time and resources to actually validate its product and be able to scale. Otherwise, it would be unlikely to have any disruption or innovation.
It can be concluded, then, that startups work with much greater insecurity, since they aim to solve a problem differently from the one already made, through a scalable and repeatable product. In addition, as analyzed, there are formal and material points that will prevent both companies from being synonymous, the main one being a business model, in the form in which it is structured, in its objectives and by what is guided.