TAKING YOUR STARTUP TO THE USA

Tytus Cytowski, Managing Partner

SOFIA, BULGARIAMay 9, 2014

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HELLO

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TYTUS CYTOWSKI

Attorney at Law

EDUCATION

• HARVARD LAW SCHOOL (LLM)• WARSAW UNIVERSITY (Mag Iur)

EXPERIENCE

• STARTUPS• VENTURE FINANCING• LICENSING

ADVISOR

• STARTUP WISEGUYS (Estonia)TRACTION TRIBE (Hungary)

• DEFY VENTURES (NYC)

BULGARIAN CLIENTS

• LIONSHARP

4CYTOWSKI LLC

Disclaimers

Any US federal tax advice contained in this presentation is not intended to be used, and cannot be used, to avoid penalties under the Internal Revenue Code or to promote, market or recommend any transaction or matter addressed herein.

This material is for informational purposes only and do not constitute advertising, a solicitation, or legal advice and should not be construed as legal advice for any purpose whatsoever.

Information contained herein is not intended to create, and receipt thereof does not constitute formation of, an attorney-client relationship.

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WHY GO?

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PRODUCT MARKET FIT

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GET CUSTOMER

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GO GLOBAL

9GET MENTORS

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GOOD VALUATIONS

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STARTUP ROADS*

*CONNECTING TO THE ECOSYSTEM

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STARTUP EVENT

TC DISRUPT

LAUNCH

DEMO DAYS

MEETUPS

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ACCELARATOR** Warrants/Equity

14ANGELLIST

KICKSTARTER

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“non-deal”ROADSHOW

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SUCCESS MATRIX

• BILLION DOLLAR STARTUP

• TRACTION

• ENGAGEMENT/CONVERSION

• GOOD TEAM

• MVP

• LOCAL VC

• CASH FLOW

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PAIN POINTS

• MISSING USER INTERFACE

• NO BUSINESS PRODUCT

• NO FOCUS ON CUSTOMER

• LANGUAGE BARRIERS

• DIDN’T FINISH STANDFORD

• DIDN’T DROP OUT OF COLLEGE

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DON’T BE SHY ABOUT ASKING FOR BUSINESS CARDS &

NETWORKING

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ALWAYS ASKALWAYS

NEGOTIATE

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DO YOU HAVE AN ENTITY IN

BULGARIA?

YES/NO

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DELAWARE C-CORPFOUNDER VESTINGISSUE SHARES (THE RIGHT WAY)EMPLOYEE OPTION POOLEINUS BANK ACCOUNT

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VESTING

VESTING

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4 YEAR VESTINGONE YEAR CLIFF (25%)

1/48 PER MONTHLEAVE=LOOSE

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PARALLEL STRUCTURE*** don’t do this at home. Need a lawyer.** contribute/exchange/transfer shares

*

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EU FUNDSJEREMIE

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RESULT = BULGARIAN + DELAWARE COMPANY

INTERCONNECTION

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GET SALES PERSON

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PILOT AGREEMENTS*

*Free

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EXCITED CUSTOMERS

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COMMUNITYBUILD COMMUNITY

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VENTURE FINANCING

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EQUITY SEED OR

SERIES A

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CONVERTIBLE NOTE

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• LOAN + EQUITY PROMISE• 20% DISCOUNT• MATURITY DATE• LIQUIDITY EVENT CONVERSION• VALUATION CAP

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DON’T FLIP & DRIVE FINANCING

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UNDERSTAND THE TERM SHEET

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REVIEW THE CAP TABLE

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IP TRANSFER ISSUES

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OPTION POOL

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UNDERSTAND

US TAX LAW

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US VISAS FOR FOUNDERS & KEY

EMPLOYEES

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DEEMED LIQUIDATION EVENT

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THANK YOU!

WWW.CYTLAW.COM

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