During the pandemic, many quick thinkers identified opportunities to create new ventures that could mitigate its impact. Now is the ideal time to ensure that, despite the urgency to create solutions to pressing problems, these and other fast-moving businesses have been properly structured to deliver their objectives.
A remarkable response
A positive outcome of the pandemic has been the spotlight cast on UK scientific expertise and the inspiring progress made in medical and technological development. Much of this has been associated with university spin-outs, an increase in the formation of new companies and adapting existing companies into new areas.
Taylor Vinters advised on 249 funding rounds between January 2020 and June 2021, 31% of those for life science/health businesses. That rate – a deal every other day – continues to be sustained and demonstrates the impressive growth in the sector.
Across all sectors, some companies have been opportunistic, whilst others have fast-tracked concepts they were already developing. The speed at which businesses have formed and set off on their commercial journey has been exceptional.
Now is a suitable time to pause for breath and focus on ensuring the right structure and strategies for continuing success.
With many new ventures experiencing short gestation periods in the race to market, there’s been little time to take appropriate or sufficient advice on how to establish their company. For example, balancing tax advice and employment advice between short-term needs and the long-term optimisation of the company needs careful deliberation, particularly in relation to future funding and scaling.
In addition, there’s currently keen competition for people qualified in certain key roles and able to work in the UK. This has highlighted shortages of individuals and teams that have the necessary skills to help companies move forward – which makes it vital to ensure that HR policies are designed to ease recruitment and encourage retention.
Looking further ahead
In response to this situation, we have produced our Founders Handbook. It’s a plain English, user-friendly guide that looks at the vital early stages of a company, and explains the options for creating your entity, sourcing your funds, building a team, choosing the right contracts and more.
The focus is on helping new companies start off on a sound legal and commercial basis. Yet our Founders Handbook also looks further forward and suggests strategies that can be incorporated now to make the future more secure, both for your business and for you as a founder.
Our Founders Handbook is not only essential reading for embryonic businesses, but also useful reference for existing companies as they reach key points in their development. That might be, for example, reviewing their commercial contracts or avoiding the common mistakes made in data compliance policies.
Clearly setting out your choices for a variety of situations, our Founders Handbook can help steer your business in the right direction. When you need answers to more specific questions, our Emerging Companies team can draw on their wide-ranging knowledge and experience to support you.
The Taylor Vinters Founders Handbook is out now and available to download here.