After years of working with startups, we see the same mistakes over and over. Not because founders are reckless — but because legal basics simply aren't a sexy topic and there's always something else to deal with. Here are five mistakes worth knowing in advance.
1. No agreement between co-founders
The most common and most serious mistake. See our dedicated article on the founders' agreement. In short: without vesting, drag-along, and non-compete clauses you're driving without a seatbelt. Friendships have survived many things, but business disputes break them with startling regularity.
2. The trademark can wait "until we're successful"
"We'll establish ourselves first, then we'll protect it." Understandable logic, but dangerous. A trademark should be filed BEFORE or at the moment of launch. Otherwise you risk someone else registering your name first — or discovering your name can't be registered at all, forcing a rebrand after two years of building. A rebrand at that stage is painful and expensive.
3. Freelancers without IP assignment clauses
Developer, graphic designer, copywriter, UX designer. Without a contract containing an IP assignment clause, you don't own the code, the logo, or the copy. Yes, you read that correctly: the freelancer who designed your logo is legally its author under Czech law. You have only a licence to use it — which may be limited or revocable.
Solution: every contract with a freelancer must contain an explicit assignment of economic rights, or at minimum an exclusive irrevocable licence.
4. GDPR and cookies as a formality
"We'll add a cookie banner — that's enough." It isn't. GDPR requires genuine and demonstrable consent, clear information about data processing, and technical measures proportionate to the level of risk. The Czech Data Protection Authority (ÚOOÚ) does carry out inspections, and fines can run into millions of CZK (or 4% of global turnover for larger players).
Minimum standard: a cookie consent tool with granular settings, an up-to-date privacy policy, and processing records.
5. Investment documents without legal review
The term sheet looks standard. It's short, clear, "just indicative". But anti-dilution provisions, liquidation preferences, pro-rata rights, and board seats can materially affect your ownership — or strip founders of control over the company.
Never sign investment documents without legal review. The cost of a review is a fraction of what an misunderstood clause can cost you at the next funding round or at exit.
How to avoid all five at once?
Simply have a lawyer who knows these issues — and is available before a problem arises. A legal retainer for a startup is exactly that: prevention rather than firefighting. For a reasonable monthly flat fee you have all the above areas covered and you know who to call when you need a quick answer.