Cross-border Legal Consulting and Support for Startups and Investors

For over 25 years, ENR Law Offices, a boutique firm founded and managed by Adv. Maxim Rakov and Adv. Andrey Nazaretsky, has been providing legal and strategic consulting and support to startup companies at all stages of development, as well as to investors. With its main office in Herzliya, offices in the US (investments and banking) and in Dubai (business in the Gulf and intellectual property), and a multidisciplinary and diverse team, the firm benefits from a clear added value: global expertise and integrated operations both locally and in the international arena. "Our goal is to help every startup or investor to succeed, by providing professional advice and support to companies and investors looking to break through borders and operate in global markets, starting from European countries such as England, Switzerland and France, to the US, South Korea, Hong Kong, Dubai and more," explains Adv. Rakov, who says that he is familiar with all perspectives due to his past experience as a senior attorney in the government service, and as the founder and director of a startup company.

The main practice of the firm, which employs 11 attorneys, is international business law, including international transactions and investments, and managing litigation abroad. "Our expertise is in handling transactions that involve more than one country. One of the projects we are managing at the moment involves eight different countries. We also deal with the integrated management of proceedings in foreign courts, such as the project that we are currently leading in Germany simultaneously in several courts in the country, in addition to the courts in Belgium and the UK."

Adv. Rakov also explains that the firm's support for its clients, whether startup companies or potential investors, is not only legal but strategic. As a business firm that is interested in long-term clients, it is very important to them that Israeli companies and investors succeed in achieving a breakthrough, and do so in the right way. "If in the past, planning for a change or remaking an existing structure placed a lot of emphasis on optimal tax planning, today, with investments abroad and foreign markets, banks and international sanctions compliance are important issues that have become critical to a company's operations. The inability to deal with financial institutions abroad, while banks in Israel are reluctant to cooperate in cross-border activities due to the inherent risks , can be a death blow to a company and its investors. This is in addition to the growing issue of sanctions, and over the past year we have seen sanctions imposed by the US on Israeli entities that failed to comply with restrictions relating to activity in Russia," he explains.

Response right from the start
According to Adv. Rakov, it is important that every startup receives assistance right from the start to avoid situations where legal issues that could be problematic later on are not agreed upon. Additionally, he contends that it is essential that the legal services provided are tailored for the specific stage of a startup's life cycle, and especially at the initial stages when the issue of saving costs is critical. "A company in the pre-seed stage does not need the same services as a start-up that is in at the advanced stage of expansion, let alone during the period leading up to an exit or IPO. Hence the importance of working according to stages based on the company's makeup," he explains and elaborates: "In the initial stages of a startup it is crucial to provide basic services that will enable operations and investment fundraising, as well as creating a clear agreement between the founders, defining intellectual property and later investment agreements."

Adv. Rakov continues and refers to the next stages when the startup is already operational. "At this point it is necessary to focus on agreements with employees, lease agreements after selecting the company's offices, contracts with clients and suppliers, defining and, if necessary, registering intellectual property (an area coordinated by the firm's Dubai branch), and regulating the entire issue of internal management," he says, emphasizing that throughout the lifespan of the company the agreements between the founders and investors are important, including types of shares, internal management, limitations and subsequent financing rounds. Of course, the firm's expertise is influenced by the experience of working with clients from different sectors: there are unique characteristics for companies that deal with medical equipment and devices (such as FDA and CE regulation and approvals and clinical trials); the telecommunications sector; IT and artificial intelligence; energy; and recently, even defense tech.

"In cases where the startup does not take off and there is no prospect for progress, legal advice is still critical, especially regarding how to terminate the company's operations or dissolve it."

Due diligence for investors
For investors, ENR's services include managing the entire due diligence process in all its aspects, whether the firm represents the startup or the investor, with an emphasis on foreign investors. "As an integrator, we manage the entire process, from structuring the deal, conducting the due diligence to the investment agreement, which always includes appendices and accompanying documents that provide protection and security to the investors and the company," explains Adv. Rakov, who again emphasizes how important it is to settle all legal matters at the beginning. "If this is not done, there will be 'loose ends' such as unresolved intellectual property issues that can create problems of claims from founders who leave, previous employers, or even the academic institution the founder was affiliated with, a situation that can harm a startup and deter investors."

Investments during the war
The Iron Swords war also affected the investment world, as Adv. Rakov describes: "This has been a systemic challenge experienced by the entire industry resulting in fewer transactions, less favorable terms and less competing for each startup. However, activity continues, investments are still coming to Israel, there are new opportunities and if things are handled correctly, it is possible to bring value to all parties in the transaction, whether within Israel or in international activity and dealings with foreign investors. "The State of Israel," he adds, "is a Start Up Nation with a global perspective, and an Israeli startup wants to benefit from capabilities that combine work with local and foreign stakeholders worldwide (investors, clients, suppliers, institutions, etc.), far beyond services that are focused only internally. This is also true in the reverse direction – a large share of the firm's clients are foreign investors and companies. When you compare our capabilities, which are equivalent to those provided by leading offices in New York, London or Zurich, and given the firm's location in Israel and its organizational culture, our costs are lower, response times are faster, and all this is without compromising on high standards and quality," he concludes.

TO THE COMPANY WEHSITE>>

In cooperation with the ENR Law Offices