Raising £3m for a tech start-up without the founders losing control

Client: UK technology start-up backed by sophisticated investors

Challenge: The client needed to raise £3 million in equity financing while maintaining control of their company. This is a common dilemma for founders who require significant capital but want to avoid diluting their decision-making power.

Solution: Zoppi & Co structured the fundraise using alphabet shares and drafted bespoke articles of association. This approach allowed the founders to issue different classes of shares with varying rights, enabling them to raise the required capital while preserving voting control and operational authority. This was done by also reserving certain decisions for the founders, a practice commonly used in Silicon Valley.

Comment from Malcolm Zoppi, corporate solicitor: "It was exciting working on an innovative corporate structuring with an ambitious start-up. Finding the right balance between investor requirements and founder control requires careful planning, and I'm delighted we could deliver a solution that worked for everyone involved."