3 Team & Organization Flashcards Preview

ETH1: 2.5 TechEnt > 3 Team & Organization > Flashcards

Flashcards in 3 Team & Organization Deck (18):

Key to start a new venture:
2 perspectives are different

  • a great founding team!
    1 innovator is not enough + get help (lighthouse person)
  • founder's n investor's


Founder's perspective - needed on a great team: + what not to do n why

  • more than 1 innovator
  • mix of skills techies + managerial/financial ppl
  • industry knowledge
  • at least 1 "lighthouse" person who has entrepreneurial experience & reputation

+ do not assign C-level roles too early... they will need to be removed otherwise at the first transformation << a SMB is very different from an early venture --> need for constant evolution!


Investor's perspective:

5 things needed

  • Magnet Qualities = ability to attract other great ppl
  • Domain Expertise
  • Intensity
  • DNA Blend = diversity
  • Scar Tissue


Constitutional aspects - 

3 most relevant forms under the Swiss law

  1. Sole proprietorship
  2. Limited-liability company (GmbH/Sàrl)
  3. Joint Stock Corporation (AG/SA/Ltd.)


Claesson's availability to discuss new ventures for 1h:

Saturdays 15-18 - reserve via his assistant


Why would you ever want to be a sole proprietor?

Only to be able to start right now or if you are very rich


Best option:

Joint stock Co = AG Req.: 100k CHF of which at least 50k or 20% in cash


LLC / GmbH option plus:

Min capital is 20k CHF n the tax filing / accounting reqs are not heavy


How to get other partners on board

(Owners sell existing shares) typically: the Co issues new shares, setting the price


Co valuation - cause

= price paid by last shareholder getting in Real share value <> nominal value!


Localisation of Co: Factors: Countries:

Corp tax rate Personal tax rate Stability Quality of life US, Canada, Australia, Japan; UK, Germany, CH, Nordic countries, Western Europe


Formal org: Purpose

So that each knows the responsibilities expected of them n rewards


Board of directors:

How many (typically)
Responsibilities / countries

  • How many: typically 5 incl. chairman
  • DE: just checks CEO CH: finances + strategy > responsible w their own money in case of illegal behaviour by Co, even if they represent another Co >> board members run away from Cos in trouble ... (diff by country)


Advisory Board - Features:

Loosely related to Co
Serves in advisory capacity w "Lighthouse" role = good names Compensated w shares, typically
+ consultants (many free from Gov, Uni...)


2 keys for successful startup:

  • let each do their role
  • let the best person be the product person, coz that's the key role!



  • sole propriety -->
  • LLC -->
  • joint stock corporation (Inc., AG...) -->

  • unlimited liability
  • limited liability (to value of venture assets)
  • limited liability (to equity) but with extra flexibility



Chain of command in CH companies: 4 levels

  • shareholders' assembly
  • board of directors > monitor & appraise CEO & mgmt
  • CEO
  • (upper mgmt)


LLC / AG tradeoff

AG allows more flexibility & anonimity & ease of share transfer, but it requires a higher initial capital + more complexity & costs for running