In this article, we aim to explain the possible rapports and interrelations between arbitration and the world of the starts-ups.
Before embarking in this analysis, it is worthy to analyse to which companies we are referring when using the term “start-up”.
In this regard, we may indicate a situation where a person, named the founder, has an entrepreneurial idea focused on a product or on a service to be launched on the market. The initial phase related to this “venture” is usually commenced directly by the founder availing of her/his own fundings. Once realized that the business needs more financial injections to grow, the founder may involve in support venture capitalist partners and investors for contributing to the conduction of the company.
In the “world” related to the start-ups many legal disputes may arise.
Hereinbelow, we will give some examples of such disputes and we will demonstrate that arbitration could be considered as a suitable dispute resolution mechanism in such an environment.