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Discover the four crucial legal lessons that every founder should consider going into 2025, from IP to employment contracts, and more!
2025 brings about important legislative changes introduced by the new government after last summer’s general election. Such changes will shape the UK’s tech ecosystem, particularly as policies crack down on issues such as AI safety, data law, and ESG.When it comes to running any business, understanding and navigating legal complexities is a pivotal part of your journey, so it is important that legal principles are engaged with from the get-go. In the fast-paced world of startups, it’s easy to find yourself juggling priorities, and balancing all elements of a business can be tricky.While founders often focus on product development, market fit, and securing funding, the legal foundation of a business can be the difference between sustainable growth and costly setbacks.Tom Bohills, Founder of Founders Law (pictured), shares four essential lessons that every founder should consider in The Tech Nation Report, the state of the nation report on UK tech. Drawing from years of experience working with some hugely innovative companies, Founders Law provides businesses with frictionless, relationship-driven legal support, from Seed through to exit.
Establish your website with clear terms and conditions, privacy, and cookie policies from the outset. These documents are not just legal formalities; they’re the bedrock of trust and transparency with your users, outlining how their data is used. Neglecting this can lead to significant fines, often calculated as a percentage of your revenue.
Your IP is likely more valuable than you realise. Registering it not only safeguards you from competitor infringement and customer confusion but also bolsters your balance sheet which is an attractive prospect for investors. This process is typically very cost effective. We have seen a number of scaleups forced to undergo expensive rebranding having failed to register their rights, even post Series A.
Collaborating with co-founders can be complex. Whilst disagreements are inevitable, having a robust co-founder agreement in place can safeguard all parties. Having a co-founder ensures clear decision-making processes and conflict resolution strategies, saving you from potential legal disputes and hefty costs.
Ensure you have legally sound employment contracts. Familiarise yourself with mandatory policies like grievance, disciplinary and dismissal procedures. These are not just legal requirements; they’re tools to mitigate risks associated with hiring and firing. Lack of proper documentation can lead to expensive settlements or tribunal cases, so ensuring your legal documents are in order allows you to concentrate on what you do best; growing your business. Scaling your startup in 2025? Download The Tech Nation Report for a comprehensive overview of the UK tech ecosystem.
Main image caption: From left to right: Katie Briefel (Founders Makers), Vivian Wong (Little Moons), Alan Cairns (Go Cardless), Katriona Windsor (Founders Keepers, Essenta), Tom Bolhills (Founders Law).
