Why your startup should be an AG instead of a GmbH if you plan on raising venture capital In Switzerland, founding an AG is costly – not least because AGs have a high minimum capital requirement of CHF 100k (50k need to be paid in at founding). It’s easier to come up with the CHF 20k required to start a GmbH. But if you plan on raising venture capital, an AG is the better choice than a GmbH. Here’s why: Fiduciary [...]

Who Gets How Much When a Startup is Sold? Startups usually depend on financially strong partners to grow. During financing rounds, investment agreements are concluded, and liquidation preferences are often one of the major deal terms to be negotiated. They are THE main feature of preferred shares (versus common shares allocated to founders and employees) investors can (and in most cases should) negotiate for. A liquidation preference is the formula that defines who is paid first and who gets how much [...]