👋🏾 Hi friends!

Another week, another panel 😜

This week – actually scratch that – TODAY, I’ll be moderating a panel for the London Venture Capital Network exploring Opportunities for UK Aerospace & Spacetech.

If you’re curious about how the UK might be able to add its own value to the growing spate of spacetech ventures out there or if you’d just like to get a better grounding around what spacetech actually is and how to understand the upstream as well as downstream opportunities in the sector, then join me and the incredibly thoughtful panel of experts we’ve got together to shed some light on the vertical today (22nd October) at Level39, One Canada Square, Canary Wharf, London E14 5AB from 1800!

Get your tickets here and come say hello to me, Ana Raposo from the European Space Agency, Lucas Bishop, investor at Seraphin Space Fund, Dr Junayd Miah, Head of Space Science and Innovation at Deloitte and Kerri Mertz, Director of International Business at Slingshot Aerospace as we chat all things spacetech 🚀

I’m well underway writing about all the things I’ve learned from the last couple of decades as founder, CFO and CEO, so sign up for early access to Off Balance – The Book and feel free to share with anyone else you think might enjoy it 😄.

Now let’s get down to business…

In this weeks Off Balance:

🎙️ Helen Goldberg from LegalEdge on Nothing Ventured
👩🏾‍💼 How CFOs and GCs can help ensure the best outcomes for your startup

𝗪𝗵𝘆 𝗹𝗮𝘄𝘆𝗲𝗿𝘀 𝗮𝗿𝗲𝗻’𝘁 𝗷𝘂𝘀𝘁 𝗳𝗼𝗿 𝗹𝗶𝘁𝗶𝗴𝗮𝘁𝗶𝗼𝗻 👩🏼‍⚖️

In this week’s episode of Nothing Ventured, I sat down with friend of EmergeOne and the podcast, Helen Goldberg, Co-Founder and COO of LegalEdge which provides flexible in-house legal counsel services to fast growth companies.

Prior to founding LegalEdge, Helen spent over a decade focussed on M&A with Eversheds Sutherland and Baker McKenzie and as Sole Counsel and European Legal Director at Espotting / Miva and then headed up the international legal team for all activity outside the US at CBS / Viacom Outdoor.

In this episode, we talked about:

𝗧𝗵𝗲 𝗚𝗼𝗹𝗱𝗶𝗹𝗼𝗰𝗸𝘀 𝗟𝗲𝗴𝗮𝗹 𝗣𝗿𝗶𝗻𝗰𝗶𝗽𝗹𝗲:

↳ Helen introduced the concept of the “Goldilocks legal principle,” noting the importance of finding the right balance in legal resources. Many startups either over-rely on tech templates or rush to engage big law firms, often leading to inefficiencies and unnecessary costs. Instead, Helen advocates for a tailored approach—using in-house counsel for ongoing legal needs while leveraging technology and law firms appropriately for specific tasks. This strategy not only saves money but also ensures that legal work is handled effectively.

𝗧𝗵𝗲 𝗜𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝗰𝗲 𝗼𝗳 𝗘𝗮𝗿𝗹𝘆 𝗟𝗲𝗴𝗮𝗹 𝗮𝗻𝗱 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗔𝗱𝘃𝗶𝗰𝗲:

↳ One of the most critical points Helen made was the necessity of obtaining good legal and financial advice from day one. Founders often overlook the significance of a well-structured cap table and intellectual property management, which can lead to major complications down the line. Helen stressed that these foundational elements are not just administrative tasks; they are essential for securing investment and ensuring a smooth exit strategy. As she put it, “Don’t mess up the things you can fix early on.”

𝗘𝗺𝗯𝗿𝗮𝗰𝗶𝗻𝗴 𝘁𝗵𝗲 𝗙𝗿𝗮𝗰𝘁𝗶𝗼𝗻𝗮𝗹 𝗠𝗼𝗱𝗲𝗹:

↳ Helen discussed the rise of the fractional model in both legal and financial services, highlighting how it provides flexibility and expertise without the overhead of full-time hires. This model has gained traction, especially among startups that need strategic roles like general counsel or CFOs but may not yet be ready for a full-time commitment. By embracing this approach, businesses can access high-quality legal and financial support while maintaining agility in their operations.

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Now let’s get into it.

Off Balance

I’m going to try something a little bit different on Off Balance moving forward. I’m going to take a deeper dive into one or more of the topics that have come up during the latest podcast to develop my own thoughts on the topic(s) as well as hopefully give you more context to the conversation 🙂 

My latest conversation wtih Helen is an ideal place to start as CFOs and GCs work hand in hand most of the time. As startups grow from seed onwards, the roles of CFO and General Counsel (GC) become increasingly crucial. Whilst seemingly distinct roles, their intersection can be crucial to driving a startup’s success. So let’s explore how they complement each other and contribute to startups’ growth and stability.

The Powerful Partnership: CFO and General Counsel in Startups

Strategic Decision-Making

The CFO and GC form a critical alliance in developming and guiding a startup’s strategic decisions. The CFO brings financial expertise and data-driven insights, while the GC provides legal perspective and risk assessment. Together, they create a balanced approach to decision-making that considers both financial implications and legal ramifications – something that is often lost in the drive to build quickly.

Financial Planning and Compliance

The CFO develops financial plans and forecasts, while the GC ensures these plans comply with relevant laws and regulations. This collaboration is essential for:

↳ Creating legally sound financial strategies
↳ Ensuring compliance with tax laws and financial regulations
↳ Developing risk management strategies that protect the company’s financial interests

Mergers and Acquisitions

During M&A activities, the CFO and GC work closely to:

↳ Conduct financial and legal due diligence
↳ Structure deals that are financially beneficial and legally appropriate
↳ Negotiate terms that protect the company’s (and the founders’) interests
↳ Manage the integration process post-acquisition

Fundraising and Investor Relations

As startups seek funding, the CFO and GC play equally pivotal roles in the process:

Preparing for Funding Rounds – the CFO prepares financial projections and valuation models, while the GC ensures all legal documentation is in order. Together, they:

↳ Develop pitch decks that are financially compelling and legally accurate
↳ Structure funding deals that balance financial needs with legal protections
↳ Negotiate term sheets that are favorable to the company

Managing Investor Relationships

Post-funding, the CFO and GC collaborate to:

↳ Provide regular financial and legal updates to investors
↳ Ensure compliance with investor agreements
↳ Manage board communications and governance issues

Risk Management and Compliance

In the startup environment which obviously can move incredibly quickly, managing risk is crucial. The CFO and GC work together to:

Identify and Mitigate Risks – the CFO assesses financial risks, while the GC evaluates legal and regulatory risks and together, they develop comprehensive risk management strategies.

Ensure Regulatory Compliance

↳ The CFO ensures financial compliance (e.g., accounting standards, tax regulations)
↳ The GC focuses on legal compliance (e.g., labor laws, data privacy regulations)

Their collaboration ensures the startup remains compliant across all areas of operation

Building and Scaling Operations

As startups grow, the CFO and GC are critical to scaling operations – taking the chaos of the startup phase and transforming it into a repeatable set of systems that create guardrails for sustainable growth:

↳ Developing Internal Processes – the CFO establishes financial controls and reporting processes whilst the GC creates legal frameworks and policies.

Together, they ensure these processes are efficient, compliant, and scalable.

Managing Human Resources

↳ The CFO handles compensation structures and financial aspects of hiring
↳ The GC manages employment contracts and ensures compliance with relevant labour laws

Their collaboration creates a framework for managing and growing the workforce which can happen incredibly quickly once a venture either raises capital or hits an inflection point where growth really starts to kick in.

Preparing for Exit Strategies

Arguably one of the most important areas where CFOs and GCs collaborate – and the ultimate goal for any high growth venture.

Whether aiming for an IPO or acquisition, the CFO and GC are instrumental in preparing the startup for exit:

↳ IPO Preparation – the CFO prepares financial statements and works on valuation and the GC ensures regulatory compliance and prepares necessary legal documents.

Together, they navigate the complex process of going public – even more reason to ensure you have both areas of your business covered in advance so as to avoid any potential risk of the process being derailed (anyone remember ‘Community Adjusted EBITDA’ 😬?).

↳ Acquisition Readiness – the CFO prepares financial data rooms and valuation models whilst the GC handles legal due diligence and contract negotiations.

Working together helps ensure the company is well-positioned for a successful acquisition

The synergy between the CFO and GC is powerful in driving a startup’s success.

They work across different functions at different stages and as startups evolve, the partnership between these two roles becomes increasingly vital, ensuring that financial decisions are legally sound and legal strategies are financially viable.

By really investing in this collborative approach between the finance and legal functions of the organisation, startups can better navigate the complex landscape of growth with greater confidence, precision and stability.

As always, my office hours are open, if you’d like to chat about this or anything else, just grab some time 😊.

I hope you found Off Balance #54 useful. As always, I’d love to get your feedback and understand the sort of topics you would love to hear about.

Just hit reply to this mail or drop me a line at [email protected] and let me know 😊

🚀And that’s a wrap for this edition of Off Balance – I’d appreciate your feedback so just reply to this email if you’ve got something you’d like to say.

📨 And if you think someone else might love this, please forward it on to them,

🎧 Finally, if you’re a fan of the Nothing Ventured podcast, please don’t forget to like, rate and subscribe wherever you get your pods – it really helps us spread the word.

That’s it from me so until next time…

Stay liquid 🙂

Aarish

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