Starting a business is never an easy task as there are various hurdles to cross when starting a business. These challenges span across choosing the right financing option for the business given the financial and legal implications of the various financing options as well as how best to secure the interests of the founders and grow the business to a viable stage.

Our associate, Funmi Akinpelumi, in this article identifies the different types of financing options, their pros and cons as well as the legal issues to be considered when sourcing for financing especially the risks associated with each financing option, and how to secure the rights of investors and founders via the inclusion or exclusion of certain provisions such as tag along and drag along rights, under the applicable agreements."

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