Your funding round shapes your company for years. Get it right.
We’ve helped Australian startups raise over $100 million across every stage — pre-seed through Series B. That means We’ve seen what market-standard looks like, but more importantly, We’ve seen what goes wrong when founders sign terms they don’t fully understand.
Here’s what we focus on when a client is raising:
Term sheets aren’t just “handshake documents”
A term sheet isn’t binding in the traditional sense, but it sets the rails for everything that follows. Once you agree to a liquidation preference or an anti-dilution ratchet, it’s very hard to walk it back. We review and negotiate term sheets before the expensive drafting starts — flagging anything unusual and benchmarking against current Australian market practice.
SAFEs and convertible notes have real differences
Most early-stage rounds in Australia now use some form of SAFE or convertible note. We’ve written extensively about how SAFEs work, the differences between convertible notes and SAFEs, and even published an Australian translation of the Y Combinator SAFE. The conversion mechanics matter — a poorly drafted valuation cap or discount rate can significantly dilute you at your next priced round.
Shareholders’ agreements are where the real power sits
Your constitution is a legal requirement. Your shareholders’ agreement is where the actual governance lives — pre-emptive rights, drag-along and tag-along provisions, vesting schedules, board composition, and reserved matters. We’ve written about why the AVCAL template often isn’t right for startups — it’s designed for later-stage deals and can be overkill (or actively harmful) at seed stage.
Preference shares and cap table complexity
Once you issue preference shares, your cap table gets more complicated. Liquidation preferences, participation rights, and anti-dilution protections all affect who gets what on exit. And if things don’t go to plan, down rounds create their own set of problems. We help founders understand exactly what their cap table means in real dollar terms.
The fundraising environment has changed
Closing a round has gotten harder than it was a few years ago. Investors are more cautious, diligence is more thorough, and the terms are shifting. We work with founders and early-stage companies — not VCs — so our advice is always oriented toward your interests.
If you’re raising or thinking about it, let’s talk.