{"id":5567,"date":"2017-11-27T14:28:10","date_gmt":"2017-11-27T12:28:10","guid":{"rendered":"https:\/\/${domain}\/blog\/?p=5567"},"modified":"2025-04-30T15:49:27","modified_gmt":"2025-04-30T12:49:27","slug":"interview-with-ehvlinc-how-can-a-startup-survive-in-a-cruel-world","status":"publish","type":"post","link":"https:\/\/${domain}\/blog\/interview-with-ehvlinc-how-can-a-startup-survive-in-a-cruel-world\/","title":{"rendered":"How Can a Startup Survive in a Cruel World? Interview with ehvLINC"},"content":{"rendered":"<p>How to attract an investor? What legal issues do startups face and how to prevent them? How do legislative differences impact businesses? We talked with Ivona Skultetyova, a researcher and lecturer at Tilburg University and a co-founder of<strong> ehvLINC. Legal Incubator<\/strong>, an organization providing legal support for aspiring entrepreneurs.<\/p>\n<p>Ivona shared her thoughts on intellectual property, taxation, legal system differences, ways of funding a company, and ways to mitigate common issues that startups face at the beginning.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-white ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d28061b0df2\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d28061b0df2\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/${domain}\/blog\/interview-with-ehvlinc-how-can-a-startup-survive-in-a-cruel-world\/#How_did_you_come_up_with_the_idea_of_your_project\" >How did you come up with the idea of your project?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/${domain}\/blog\/interview-with-ehvlinc-how-can-a-startup-survive-in-a-cruel-world\/#How_does_the_project_work\" >How does the project work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/${domain}\/blog\/interview-with-ehvlinc-how-can-a-startup-survive-in-a-cruel-world\/#Who_can_apply_for_the_assistance_of_ehvLINC_How_do_you_select_which_business_to_support\" >Who can apply for the assistance of ehvLINC? How do you select which business to support?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/${domain}\/blog\/interview-with-ehvlinc-how-can-a-startup-survive-in-a-cruel-world\/#What_were_the_most_successful_projects_supported_by_ehvLINC\" >What were the most successful projects supported by ehvLINC?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/${domain}\/blog\/interview-with-ehvlinc-how-can-a-startup-survive-in-a-cruel-world\/#Lets_talk_about_the_business_climate_in_the_Netherlands_Is_it_favorable_for_doing_business\" >Let\u2019s talk about the business climate in the Netherlands. Is it favorable for doing business?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/${domain}\/blog\/interview-with-ehvlinc-how-can-a-startup-survive-in-a-cruel-world\/#What_about_Eindhoven_What_makes_the_city_so_attractive_for_startups\" >What about Eindhoven? What makes the city so attractive for startups?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/${domain}\/blog\/interview-with-ehvlinc-how-can-a-startup-survive-in-a-cruel-world\/#How_much_time_and_money_do_you_need_to_start_a_business_in_the_Netherlands\" >How much time and money do you need to start a business in the Netherlands?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/${domain}\/blog\/interview-with-ehvlinc-how-can-a-startup-survive-in-a-cruel-world\/#Where_can_entrepreneurs_get_funding_for_their_projects\" >Where can entrepreneurs get funding for their projects?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/${domain}\/blog\/interview-with-ehvlinc-how-can-a-startup-survive-in-a-cruel-world\/#How_does_the_taxation_system_work_in_the_Netherlands\" >How does the taxation system work in the Netherlands?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/${domain}\/blog\/interview-with-ehvlinc-how-can-a-startup-survive-in-a-cruel-world\/#Are_there_any_ways_to_reduce_the_tax_burden\" >Are there any ways to\u00a0reduce the tax burden?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/${domain}\/blog\/interview-with-ehvlinc-how-can-a-startup-survive-in-a-cruel-world\/#How_does_the_Netherlands_deal_with_digital_business_Can_you_register_a_business_from_another_country\" >How does the Netherlands deal with digital business? Can you register a business from another country?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/${domain}\/blog\/interview-with-ehvlinc-how-can-a-startup-survive-in-a-cruel-world\/#How_important_is_legal_support_for_startups_What_problems_can_it_solve_or_prevent\" >How important is legal support for startups? What problems can it solve or prevent?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/${domain}\/blog\/interview-with-ehvlinc-how-can-a-startup-survive-in-a-cruel-world\/#What_are_the_most_common_issues_that_startups_face_at_the_beginning\" >What are the most common issues that startups face at the beginning?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/${domain}\/blog\/interview-with-ehvlinc-how-can-a-startup-survive-in-a-cruel-world\/#Can_a_company_prevent_intellectual_property_conflicts\" >Can a company prevent intellectual property conflicts?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/${domain}\/blog\/interview-with-ehvlinc-how-can-a-startup-survive-in-a-cruel-world\/#What_legal_form_should_a_startup_choose_when_founding_a_company\" >What legal form should a startup choose when founding a company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/${domain}\/blog\/interview-with-ehvlinc-how-can-a-startup-survive-in-a-cruel-world\/#How_can_differences_in_legal_systems_around_the_world_impact_the_startup_What_should_the_founders_do_to_mitigate_possible_issues\" >How can differences in legal systems around the world impact the startup? What should the founders do to mitigate possible issues?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/${domain}\/blog\/interview-with-ehvlinc-how-can-a-startup-survive-in-a-cruel-world\/#Do_you_think_that_startups_from_developing_countries_should_consider_moving_to_Western_Europe_or_the_US\" >Do you think that startups from developing countries should consider moving to Western Europe or the US?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/${domain}\/blog\/interview-with-ehvlinc-how-can-a-startup-survive-in-a-cruel-world\/#Is_it_worth_registering_a_company_in_another_country_to_avoid_excessive_taxation_and_seem_more_trustworthy\" >Is it worth registering a company in another country to avoid excessive taxation and seem more trustworthy?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/${domain}\/blog\/interview-with-ehvlinc-how-can-a-startup-survive-in-a-cruel-world\/#What_does_a_startup_need_to_attract_investors\" >What does a startup need to attract investors?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/${domain}\/blog\/interview-with-ehvlinc-how-can-a-startup-survive-in-a-cruel-world\/#How_to_choose_which_investors_to_approach_with_your_idea\" >How to choose which investors to approach with your idea?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/${domain}\/blog\/interview-with-ehvlinc-how-can-a-startup-survive-in-a-cruel-world\/#Is_it_harder_to_apply_for_public_or_private_funding\" >Is it harder to apply for public or private funding?<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"How_did_you_come_up_with_the_idea_of_your_project\"><\/span><strong>How did you come up with the idea of your project?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>I\u2019ve been active in the startup community around Eindhoven, the city with a long tradition of technology and design. One day, I was thinking how I can support the startup community as a lawyer. Together with my co-founder, we came up with the idea of making legal services affordable for startups even in the early stages of their business activity. That\u2019s a pretty unique offer today.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_does_the_project_work\"><\/span><strong>How does the project work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Since I work at the university, I have easier access to the student community. We involve students because they are qualified enough and are looking for an opportunity to put their knowledge to practice.<\/p>\n<p>However, we don\u2019t want to compromise the quality of our work so we also engage regional law firms that are supervising students&#8217; work. We assign students to a particular project (aka startup) so that they can see how their work can help it survive, grow and thrive.<\/p>\n<p>Now we are positioning our project more as a platform, which startups can turn to if they want to connect with other stakeholders in the community or if they need legal assistance.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Who_can_apply_for_the_assistance_of_ehvLINC_How_do_you_select_which_business_to_support\"><\/span><strong>Who can apply for the assistance of ehvLINC? How do you select which business to support?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Unfortunately, our resources are limited, and we always have more applications than we can take. That\u2019s why we arrange an interview with every startup interested in getting assistance. We select them based on the suitability. Whether we can help them depends on the complexity of the question. Besides, we involve private actors and law firms to help us choose the most suitable startups.<\/p>\n<p>Usually, our basic requirement is that the startup needs to have a team. The teamwork is extremely important and we don\u2019t accept individuals since they are less likely to execute a project or a business plan.<\/p>\n<p>Secondly, they need to have an innovative idea and some steps taken for its fulfillment. For instance, a beta-version or MVP of their product, which is tangible proof that they are working intensively on the execution of their business plan.<\/p>\n<p>Finally, we go deeper into what legal issues they have and how we can help them using the competence of students.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_were_the_most_successful_projects_supported_by_ehvLINC\"><\/span><strong>What were the most successful projects supported by ehvLINC?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>One of the most successful startups was ATO-GEAR\u00a0whom we helped with legal matters. The company put the product on the market this summer and has already had several rounds of private investments.<\/p>\n<p>They created a wearable intelligent shoe sole, which is helping you to develop a proper technique for running. It collects the data on how you run and how you position your feet. Besides, it tracks you with GPS to show the route you\u2019ve taken.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Lets_talk_about_the_business_climate_in_the_Netherlands_Is_it_favorable_for_doing_business\"><\/span><strong>Let\u2019s talk about the business climate in the Netherlands. Is it favorable for doing business? <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Indeed, it is. In the Netherlands, you can easily get a loan, while the authorities can serve people for free. They organize a lot of workshops and meetings for people who want to start a business, making it easier for them.<\/p>\n<p>Also, in recent years, the government has been trying to remove the obstacles to starting a business. Right now, you don\u2019t need any capital to start a company, which is very good for small and mid-sized businesses.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_about_Eindhoven_What_makes_the_city_so_attractive_for_startups\"><\/span><strong>What about Eindhoven? What makes the city so attractive for startups?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The city of Eindhoven has a very well-known and successful technological university, where students from all over the world are developing projects that can potentially become startups in the future. After finishing studies, they can go on to launch their own startups based on the university projects they had. So, we have many young engineers in their early twenties, who have never really had any other job apart from being entrepreneurs.<\/p>\n<p>Some of the companies even remain on the campus. There are even designated spaces and services for the companies that came out of the university.<\/p>\n<p>Also, we have big technology companies, such as Philips and ASML, that were interested in finding new solutions and now run several projects in the city, supporting startups. I guess it creates an environment where the startups can thrive. It\u2019s not as large or interconnected as Silicon Valley or Berlin Startup Ecosystem but we\u2019re gradually going there.<\/p>\n<p>Another feature of our ecosystem is that it\u2019s very hardware-oriented where we don\u2019t do web applications or software alone but we do hardware combined with software. Of course, hardware startups are more capital-intensive and more costly to develop. That\u2019s why it doesn\u2019t go as fast as in software-oriented startup ecosystems. But I think that education, governmental support, and the involvement of corporations is the reason why the startup ecosystem is where it is now.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_much_time_and_money_do_you_need_to_start_a_business_in_the_Netherlands\"><\/span><strong>How much time and money do you need to start a business in the Netherlands? <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>You don\u2019t need a starting capital if you want just a limited liability company to start a business. The registration of a business can be done within 2-3 days for about 700\u20ac.<\/p>\n<p>Of course, as time goes by, you\u2019ll need to maintain that legal entity so you will need to invest a little bit more into the auditing, administrative staff, and all the formalities. So I wouldn\u2019t say it\u2019s completely costless.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Where_can_entrepreneurs_get_funding_for_their_projects\"><\/span><strong>Where can entrepreneurs get funding for their projects?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Banks have special programs for starting entrepreneurs where\u00a0they can take some loans for the very early stages.<\/p>\n<p>We also have governmental venture capital funds that focus on startups. Every region has its own fund that offers convertible notes for startups,\u00a0i.e. a loan that can be turned into equity\/shares. Actually, this is the first investment for many startups. Unfortunately, there are not as many private venture capital funds as we would want.<\/p>\n<p>Now, there\u2019s also a possibility to do crowdfunding like in other countries, which is also pretty convenient.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_does_the_taxation_system_work_in_the_Netherlands\"><\/span><strong>How does the taxation system work in the Netherlands? <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The taxes here are progressive, so the more you earn, the more taxes you pay. There\u2019s a basis that is not taxed for newly registered companies with low incomes.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Are_there_any_ways_to_reduce_the_tax_burden\"><\/span><strong>Are there any ways to\u00a0reduce the tax burden?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>There are certain rules that say that if you are doing research and development (R&amp;D), you can qualify for tax deductions. That\u2019s how the government gives the green light to companies dealing with innovation and deducts some of their investments into R&amp;D from the taxable income.<\/p>\n<p>So although the taxes are huge, the government invests a lot in building the ecosystem. This way, the money is not lost. It\u2019s put back in the system to support startups.<\/p>\n<p>We provide some tax advice, which helps startups save some money with all the tax deductions. This is the primary area where we help to make startups more legal-savvy.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_does_the_Netherlands_deal_with_digital_business_Can_you_register_a_business_from_another_country\"><\/span><strong>How does the Netherlands deal with digital business? Can you register a business from another country?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>I think the Netherlands is not a leader in this field. It could be Estonia, where you can establish a business without ever going to Estonia. You can even become an e-citizen of Estonia.<\/p>\n<p>In the Netherlands, if you want to start a business, you still need to show up in the country at some time. You don\u2019t have to live in the Netherlands necessarily but you need to have a Dutch bank account. If a business operates only online, it can have problems registering as a Dutch company. Certainly, there are some agencies that can arrange that for you and register a sort of a \u201cletterbox company\u201d. Yet, there are some procedures in place, and you\u2019ll need to be present at some point.<\/p>\n<p>Besides, if you have a company outside the EU, you will need to meet more requirements, and the procedure will be a little more complex.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_important_is_legal_support_for_startups_What_problems_can_it_solve_or_prevent\"><\/span><strong>How important is legal support for startups? What problems can it solve or prevent?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>First of all, the protection of intellectual property is very important. Companies (especially engineers) tend not to think about it in the early stages. However, even if you present your invention to too many people, it can become unpatentable.<\/p>\n<p>Another big topic is personal data security and privacy. There\u2019s a new regulation coming up in Europe that will influence all the companies dealing with the personal data of their users. This regulation will apply to all countries within the European Union, regardless of the company size. All companies that collect and store personal data of their users will have to abide by these rules, which are very complex and one of the strictest in the world. The fines are huge in case of their breach. That\u2019s one of the aspects where we try to protect businesses by advising them on the issue.<\/p>\n<p>Furthermore, when an external investor comes, you will have to be prepared and have all your legal household in order. This will show that you are a professional and ready for the investment. Besides, if investors are doing their due diligence and find something they don\u2019t like or which is legally not in order, this could be a deal-breaker. Therefore, we\u2019re also trying to prepare startups for a potential external investment.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_are_the_most_common_issues_that_startups_face_at_the_beginning\"><\/span><strong>What are the most common issues that startups face at the beginning?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The most common problem is that the people starting a business have to understand that they are not only working on a product but also have to pay attention to business aspects. They need to do marketing, deal with potential partners, investors, and customers.<\/p>\n<p>So, they either need to build a team of professionals who can do all these things or switch between their roles if they don\u2019t have a specific person assigned to each task. This kind of versatility is what they sometimes fail to understand. This is especially common for people with a very specialized background.<\/p>\n<p>Of course, there are also problems connected with access to finance and legal issues.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Can_a_company_prevent_intellectual_property_conflicts\"><\/span><strong>Can a company prevent intellectual property conflicts?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In our ecosystem, it\u2019s very easy because we cooperate with the Dutch Patent Office. We have an assigned expert in this field. All startups that are admitted to the project first go to him to make trademark search. This way they can see whether their name or logo may be compromised by an already registered trademark.<\/p>\n<p>In the early stages, when you don\u2019t have many customers and when the logo is not connected with the brand, it is very easy to change it.<\/p>\n<p>We try to resolve this question early on and have them register a trademark so that they can be sure that everything is organized well from the legal perspective.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_legal_form_should_a_startup_choose_when_founding_a_company\"><\/span><strong>What legal form should a startup choose when founding a company? <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>I think the most suitable legal form for startups is a private limited liability company (LLC in the US and Ltd. in the UK). It\u2019s just a standard company where you can determine a lot of aspects of the internal structure and have flexible shares. This way, you can arrange most things, according to your wishes or those of your investors.<\/p>\n<p>It\u2019s important to make the legal form flexible enough to meet investors\u2019 demands. This way, it won\u2019t pose any problems for investor-startup relationships.<\/p>\n<p>A minority of startups choose a partnership form because it\u2019s even cheaper to establish. Of course, the natural drawback of partnerships is that partners have unlimited liability and are not protected from any losses that might occur.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_can_differences_in_legal_systems_around_the_world_impact_the_startup_What_should_the_founders_do_to_mitigate_possible_issues\"><\/span><strong>How can differences in legal systems around the world impact the startup? What should the founders do to mitigate possible issues?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>That\u2019s quite problematic because startups start to think of their international expansion very early. It happens much earlier than in case of big or mid-sized companies.<\/p>\n<p>We have startup teams of 5-7 people who are already thinking of expanding to Scandinavia, Germany, France, and so on. That\u2019s obviously a problem. The only solution I see is to find a partner abroad who could better acquaint them with the local market conditions and mitigate any issues.<\/p>\n<p>Therefore, in our project, we try to connect startups with foreign students who may help them with the research of different legal systems. For instance, we have one startup that has opened an office in Portugal. We also have Portuguese students who may help it to check if everything is in order and if Portuguese laws are complied with. Yet, we\u2019re only testing this now, trying to figure out whether we can somehow involve foreign students in these expansion efforts of the startups we\u2019re working with.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Do_you_think_that_startups_from_developing_countries_should_consider_moving_to_Western_Europe_or_the_US\"><\/span><strong>Do you think that startups from developing countries should consider moving to Western Europe or the US? <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>I think that they are sometimes compelled or forced to move by their investors. Many companies move to the US or UK so that their investors could have their shares in the legal system, which they know and understand. It happens often, especially with American investors.<\/p>\n<p>However, there are alternative ways to raise funds. For instance, there\u2019s Initial Coin Offering (ICO), a new way of raising funds, which is completely digital. Besides, a lot of the founders are now from Eastern Europe. They have some legal entities in a country that has a favorable climate for digital technology and cryptocurrencies while living in their country of origin.<\/p>\n<p>Thus, I think moving a company abroad will soon be irrelevant because companies will exist in a digital space.<\/p>\n<p>Right now, companies are raising a lot of money through ICO from people all over the world. Even startup teams are not from the same place. For instance, you can see one founder from Portugal, one &#8211; from Russia, one &#8211; from the UK. So I think it becomes less important where you are originally from or where you are at the moment physically.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Is_it_worth_registering_a_company_in_another_country_to_avoid_excessive_taxation_and_seem_more_trustworthy\"><\/span><strong>Is it worth registering a company in another country to avoid excessive taxation and seem more trustworthy?\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>It depends on what you are trying to achieve. I don\u2019t have personal experience with that. I think, to some extent, it\u2019s a formality. There are processes where you can find a company in the Netherlands or UK, and then establish its branch in whatever country you live in.<\/p>\n<p>Personally, I would do it only if your investor required it or in case your customers are in that country so that they can work with a company that has a familiar legal form. But usually, businesses shift due to taxation reasons. In this case, they need to determine whether the advantages outweigh the costs and what kind of benefits you want to obtain. Otherwise, it doesn\u2019t make much sense.<\/p>\n<p>Some investors may consider the company more credible if it\u2019s located in, say, Western Europe. Yet, I don\u2019t think it matters much. In the long run, they will know who is actually working in the company and the formal registration of the business won\u2019t matter.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_does_a_startup_need_to_attract_investors\"><\/span><strong>What does a startup need to attract investors? <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>When I speak to the investors, they always emphasize that the most important thing in the startup is a <strong>balanced team<\/strong> that can execute the idea you\u2019re offering. Everyone should know what their role is and what part of the business plan they will be focusing on.<\/li>\n<li>You need to have the idea well worked out in the <strong>business model <\/strong>so that you not only master the innovative part but the business part as well. You need to clearly understand who\u2019s your customer, where\u2019s your market, how to get on the market, how to target the customer, and so on. This is something people often underestimate or forget to work out properly.<\/li>\n<li>Finally, you need a <strong>short and understandable startup pitch<\/strong> that will make you stand out from the competitors. Investors are always short of time and they see a lot of ideas every day so make sure you present something worthy of their attention. Besides, have all your facts checked because there\u2019s no second chance to make a first impression. However, one of the problems I notice is that pitches are often done by non-tech people that don\u2019t understand the technology well enough to deliver their idea to an investor.<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"How_to_choose_which_investors_to_approach_with_your_idea\"><\/span><strong>How to choose which investors to approach with your idea?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>It largely depends on where you are and what investors are present in your environment. In our case, the investors are mostly related to public funding and they are, of course, different from private investors. They have to comply with some formalized requirements.<\/p>\n<p>With private investors, it\u2019s more subjective but it\u2019s also good to do some background check on who the investors are, what types of companies they have invested in. By doing that, you can extrapolate whether you will fit in their portfolio or not.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Is_it_harder_to_apply_for_public_or_private_funding\"><\/span><strong>Is it harder to apply for public or private funding?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>I think it\u2019s more difficult to \u201ccrack\u201d a private investor, as their financial interest is extremely strong. The first thing they will want to see is how they\u2019re going to get their return on investment (ROI). Usually, they have their own investors who they need to provide with ROI reports.<\/p>\n<p>With public funding, the objectives are more than just ROI or financial interest. They tend to support innovation and ecosystem in general, giving chance to young entrepreneurs. That\u2019s why they are usually not as strict and tend to give smaller investments allocated to a larger number of entrepreneurs. They certainly assume that some of the money may be lost.<\/p>\n<div style=\"background: #ECECEE; padding: 20px;\">Weblium has always supported entrepreneurs with great ideas. Get your professional website built at the price of hosting and domain name.<center>Learn<a href=\"https:\/\/weblium.com\/\"> more<\/a><\/center><\/div>\n","protected":false},"excerpt":{"rendered":"<p>How to attract an investor? What legal issues do startups face and how to prevent them? How do legislative differences impact businesses? We talked with Ivona Skultetyova, a researcher and lecturer at Tilburg University and a co-founder of ehvLINC. Legal Incubator, an organization providing legal support for aspiring entrepreneurs. Ivona shared her thoughts on intellectual &hellip;<\/p>\n","protected":false},"author":35,"featured_media":6116,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","inline_featured_image":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[95,75],"tags":[],"class_list":["post-5567","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-for-startups","category-opinions","has-thumb"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How Can a Startup Survive in a Cruel World? Interview with ehvLINC - Weblium Blog<\/title>\n<meta name=\"description\" content=\"Legal and business issues may often turn the greatest idea into a failure. 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Learn how to mitigate these barriers and ensure your startup&#039;s success\" \/>\n<meta property=\"og:url\" content=\"https:\/\/${domain}\/blog\/interview-with-ehvlinc-how-can-a-startup-survive-in-a-cruel-world\/\" \/>\n<meta property=\"og:site_name\" content=\"Weblium Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/weblium\/\" \/>\n<meta property=\"article:published_time\" content=\"2017-11-27T12:28:10+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-04-30T12:49:27+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/${domain}\/blog\/wp-content\/uploads\/2017\/04\/320x208_07.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"320\" \/>\n\t<meta property=\"og:image:height\" content=\"208\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Iryna Malii\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Weblium\" \/>\n<meta name=\"twitter:site\" content=\"@Weblium\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Iryna Malii\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"15 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/wp.en.weblium.com\\\/interview-with-ehvlinc-how-can-a-startup-survive-in-a-cruel-world\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/wp.en.weblium.com\\\/interview-with-ehvlinc-how-can-a-startup-survive-in-a-cruel-world\\\/\"},\"author\":{\"name\":\"Iryna Malii\",\"@id\":\"https:\\\/\\\/wp.en.weblium.com\\\/#\\\/schema\\\/person\\\/7d4394918bfd9462d59ff58efd1aad65\"},\"headline\":\"How Can a Startup Survive in a Cruel World? 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