Yes — before, not after. The shareholders agreement is what turns “we trust each other” into rules everyone agreed to while they were still friendly: who decides what, how new money dilutes, what happens if someone wants out, and how a deadlock breaks. Taking investment without one hands those questions to whoever has the most leverage when they finally arise.
What it depends on
Where judgement stays human: The accounting and tax framing of a raise is our lane; the agreement itself is a legal document — we’ll make sure the numbers and structure line up and work with your lawyer on the drafting.
A company constitution covers the basics, but it doesn’t settle the things that actually cause founder and investor disputes — drag-along and tag-along rights, reserved decisions, pre-emptive rights, and exit mechanics. Those live in the shareholders agreement.
The point of doing it before you raise is leverage and goodwill: terms are far easier to agree when no one is under pressure and everyone still assumes the best of each other. After the money is in, every change is a negotiation.
The accounting and tax framing of a raise is our lane; the agreement itself is a legal document — we’ll make sure the numbers and structure line up and work with your lawyer on the drafting.
Local Knowledge Ventures · general information current as at 1 September 2026. This is general information only, not personal financial, tax or legal advice.