In April Learnsy was chosen to Discovery Vienna program by the Vienna Business Agency among other 24 promising and innovative startups from around the word. For Learnsy ViennaUP proved to be an invaluable experience, offering insights into startup growth, investment strategies, and impactful entrepreneurship.
At ViennaUP we connected with investors passionate about backing impact startups. With our pre-seed round now open, we're seeking mission-aligned partners ready to shape the future with us. therefore gaining legal insights into the startup lifecycle made the experience even more valuable.
In this blog post we summarize presentations and discussions from Venture & Law Breakfast event by Calm/ Storm Ventures and Schönherr Attorneys at Law and from the HiQ Connect Europe event. Both events effectively covered key topics, from structuring shareholder agreements to scaling internationally. Here’s what entrepreneurs should consider when building a business for long-term success.
Incorporation and investment strategies
Launching a startup requires more than a great idea. It demands strategic planning, strong partnerships, and a long-term vision. Some key considerations include:
Know your shareholders. Investors often back teams rather than ideas, but not all teams function effectively. Conducting due diligence on co-founders and investors is essential to ensuring alignment and avoiding potential toxicity within the founding team.
Think ahead about your cap table. A company’s ownership structure will change over time. Founders must consider how their cap table might look in two years and ensure it supports sustainable growth.
Negotiate terms wisely. Shareholder agreements should be negotiated collectively. While no single individual should have absolute veto power, ensuring a structured group can block decisions when necessary provides stability.
Exit strategies are unpredictable. No one can precisely predict how an exit will unfold. Whether through acquisition or another transition, early preparation is critical.
Funding and financial planning
Navigating financial decisions requires foresight and adaptability. ViennaUP discussions highlighted several crucial aspects of financial structuring:
Talent attraction. Startups often compete for top talent, and offering equity options can be a powerful way to secure key hires.
Bridge financing. Many startups rely on convertible notes/ investments to maintain flexibility while securing funds between larger financing rounds.
Valuation awareness. Raising more money doesn’t always mean better outcomes—higher investments can drive down valuation over time. Tracking funding rounds and financial models helps founders maintain control over their company’s trajectory.
Earn-out models. When selling a startup, founders may have the opportunity to earn additional revenue based on continued business performance. This model can be beneficial for both the buyer and seller when structured effectively.
Selling a startup. If achieving unicorn status isn’t realistic and was something you were after, selling quickly can be a strategic move. However, founders must drive the sales process themselves. Key considerations include:
- Recognizing that time sensitivity plays a role, especially if financial stability is at risk.
- Understanding that selling a company takes time—each shareholder must be convinced that the deal makes sense.
Scaling beyond borders
Expanding internationally is a major milestone, but it comes with financial and regulatory challenges:
Taxation. When incorporating in another country, tax obligations are determined by company valuation. Startups should assess their current value, shareholder agreements, and previous funding rounds to understand potential tax implications.
U.S. Investors. Investors in the U.S. make more quick, digital-first decisions, but complexities emerge in later negotiations. Being prepared for competitive deal-making can make a significant difference.
Customer research. Before entering new markets, businesses must conduct thorough research to understand how much customers are willing to pay for their product. Market pricing strategies can make or break international expansion efforts.
Final thoughts
Entrepreneurs today must balance innovation with strategic execution. Whether securing early-stage investments, planning exit strategies, or expanding internationally, the lessons from ViennaUP reinforce the need for thoughtful decision-making at every stage.
For startups looking to scale, the key takeaway is clear: growth is a journey, and success hinges on strong leadership, structured financial planning, and adaptable strategies.
Learnsy is a platform for sustainability learning. It curates global learning offerings and delivers job-role-specific learning journeys to support companies compliance and ESG efforts.
