Frequently Asked Questions

In this section, we’ve gathered the most common questions applicants ask when it comes to business immigration to Canada, starting and managing a business, or resolving legal disputes.

If you don’t find the answer you’re looking for, simply fill out the contact form and the Shekarian Law Group team will review your case in detail and provide tailored guidance.

Can you help investors as well as founders?

Yes. We advise both sides—including investment terms, diligence, and protective provisions—while maintaining confidentiality and managing conflicts appropriately.

What value does legal consulting add during the investment agreement process?

Our business legal advisors oversee the Term Sheet, final investment contracts, and coordinate with accountants and investor counsel to ensure a legally compliant, fair, and founder-friendly transaction.

What should I do to be “diligence-ready”?

Clean minute book, clear IP ownership/assignments, contractor/employee agreements, key customer/vendor contracts, and a reliable cap table.

How long does a financing usually take to close?

It depends on round complexity, diligence readiness, and investor responsiveness. Having organized records and a clear term sheet speeds closing.

Will investors require a board seat?

Often yes (or amendments to existing arrangements). Governance clarity is usually required for investor comfort and future rounds.

Can I raise from multiple angels without a fund?

Yes. But documentation, investor communications, and closing logistics matter—especially if you have many small investors.

What is a liquidation preference and why does it matter?

It defines payout order at exit. Even with a high valuation, certain preferences can reduce founder/common shareholder outcomes.

What are the biggest term sheet red flags for founders?

Aggressive liquidation preferences, overly broad veto rights, unclear option pool treatment, punitive anti-dilution, and tight founder vesting/termination consequences.

Do I need a term sheet before involving a lawyer?

No. A lawyer can be involved before or after a term sheet is drafted.

If a draft term sheet already exists, early legal review is often helpful to identify structural issues and negotiation risks before positions harden.

What’s the difference between a SAFE and a convertible note?

A SAFE (Simple Agreement for Future Equity) is a contractual right to receive equity upon a future financing or liquidity event. It does not accrue interest and has no maturity date.

A convertible note is debt. It accrues interest, has a maturity date, and converts into equity upon defined triggers. The added structure can increase complexity and pressure if a priced round is delayed.

The right choice depends on stage, leverage, investor expectations, and future financing plans.

Shekarian Law PC is a professional corporation licensed by the Law Society of Ontario. We provide strategic legal counsel to founders, investors, and companies building, expanding, and operating in Canada, including cross-border and regulatory matters.