What is it: In conversation with James Phipson, Founder & Managing Director of Dragon Argent discussing how to futureproof your company structure for investment rounds.

As a founder, have you stopped to ask yourself what your long-term goals are and what assets drive the value of your business?   

If you haven’t, your corporate structure may not support these ambitions and could even slow you down.  A company structure should facilitate the ambition of founding teams and protect the intellectual property or assets the value of a business is built on.  

Why is it important: Too often, entrepreneurs are poorly advised at the point at which a company is formed, creating issues that are time consuming and costly to unravel later.  A poorly planned corporate structure can:

• Be difficult to adapt to changing needs

• Can fuel risk for investors

• Increase tax liability

• Fail to protect founders long term interests

Ultimately, creating barriers that make it harder for founders and entrepreneurs to achieve the long-term objectives they set out with. 

What are the benefits:

However, if planned appropriately, creating a future proofed and flexible corporate structure can be straightforward and cost efficient if you consider:

• How to protect intellectual property or assets

• Your likely expansion or joint venture ambitions

• Future mergers or disposals opportunities

Once a bespoke structure has been agreed the benefits include:

• Appropriate tax treatment and protection of entrepreneur, EMI and EIS relief status

• Flexibility to license or create Special Purpose Vehicles to adapt to opportunities and threats

• Protection of shareholders’ long-term interests

• Correct treatment of intercompany loans and other accounting considerations

Who it is for: Founders, owner operators and executive management of ambitious startups and SMEs who want to build a valuable business.

About James Phipson

Managing Director, Dragon Argent

It’s no wonder James’ concept for Dragon Argent came about: a serial entrepreneur whose strategic mind enabled him to identify and challenge the various frustrations and pitfalls associated with traditional professional services providers, and build an organisation where simple, insightful solutions are the norm.  

James specialises in corporate governance, corporate finance and international development. Alongside his role at Dragon Argent he volunteers as a Commander in the City of London Police, where he is responsible for all volunteering, and speaks nationally and internationally on corporate governance and structures.