How to hack legal as a Series A startup in Czechia & Slovakia

Published on
April 7, 2025

You don’t raise a Series A to play it safe. You raise it to grow fast, sell more, and prove you’re ready to conquer the world. But bigger goals bring bigger challenges, and your legal setup needs to support growth, not block it.

Now more than ever, you need to keep moving the business forward. Luckily, we’re here to show you exactly what to focus on legal-wise.

Two Golden Rules: de-risk & be sales-focused

At Series A, these two rules will save you time, money, and plenty of headaches:

  • De-risk: At this stage, investors pay more attention to red flags. Clean up before you start fundraising.
  • Be sales-focused: You’re raising money to grow your client base. Structure your entire business to power a well-oiled sales machine.

Here’s where these two rules matter most.

1. Managing investors: balance old & new

Series A brings in higher-valuation investors with higher expectations. They’ll want protections like liquidation preferences, veto rights, and board seats. You’ll also have to negotiate with existing investors to make room for the new ones. And expect the new crowd to ask you to stick around until the next round (usually 2–3 years).

Tip: Investor negotiations take time, so start early.

2. People contracting: keep it clean

Messy hiring will get you called out. Investors expect compliant contracts for key roles, especially leadership. You need to de-risk, so contractors should be the exception, not the norm. Experienced investors won’t buy the “we’ll sort it our later” narrative. Plus, your sales team needs clear, motivating commissions to drive growth.

Tip: Don’t hire people as contractors unless absolutely necessary. Clean this up before due diligence.

3. ESOP: make it work globally

Still using a local phantom ESOP? Time to upgrade. It usually won’t work for international hires, and most investors aren’t fans either. You need a real, asset-based plan your team understands, one that works across borders. It’s also the right time to top up your ESOP pool to stay attractive for new hires.

Tip: Switch to an equity management platform (like ours) when you hit around 50 employees.

4. Client contracting: set up a sales engine

At Series A, you're raising to sell. That takes more than a brilliant product. You need a proper sales engine: a driven team, a clear commissions scheme, standardized contracts, and a scalable sales process. One setup that works across clients and markets keeps deals moving.

Tip: Take time to design your sales process early. Good structure is what makes it scalable.

5. New markets: expand smart, not fast

Testing a new market? You don’t need a subsidiary just yet. It’s expensive and only makes sense if you’re all in. Start with an Employer of Record (a company that legally employs workers on your behalf) to hire quickly and test the waters. If you’re eyeing US investors, you will need a Delaware flip.

Tip: For your first 3–5 hires abroad, an EOR is your best move. Try platforms like Remote or Deel.

6. Trademarks & patents: cover your assets

Your brand and tech are real business assets - and potential targets. If you’re expanding, confirm your trademarks cover the markets you're entering. An EU trademark won’t do the job in the US. If you’re in deep tech, patents matter, especially for US investors. Without protection, you risk competitors swooping in or facing claims you never saw coming.

Tip: If you’re raising in the US, get your patent portfolio in shape before due diligence.

In a nutshell

You raise a Series A to grow faster and sell bigger, but that brings new investors, stricter due diligence, and a need for better legal hygiene. De-risk your business to avoid red flags, and gear up to close deals quickly with clear contracts and a real, cross-border ESOP. Balance old and new investor rights, and keep your hiring structured to impress. Expand carefully using an EOR, and protect your brand and tech with trademarks and patents, especially if you’re aiming for the US.

Still not sure what you need? Check out our fixed-price legal packages for Series A. We’re here to help you grow.

Legal
Content
  1. Managing investors: balance old & new
  2. People contracting: keep it clean
  3. ESOP: make it work globally
  4. Client contracting: set up a sales engine
  5. New markets: expand smart, not fast
  6. Trademarks & patents: cover your assets
  7. In a nutshell

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