Typical Clauses in Investment Agreements
The execution of a financing round and the ongoing collaboration between investor and company are legally governed by a complex investment agreement along with various annexes and accompanying documents. It is standard practice for the investor to propose a term sheet detailing the economic terms of their investment and the rights they expect in the investment agreement prior to concluding a financing round.
What should you keep in mind when negotiating the term sheet and final contracts, and what should you know under any circumstances before entering discussions with investors? Is a traditional financing round with an investment agreement even the right path for me?
Dr. Martin Sundermann & Dr. Felix Dörrenbächer from Osborne Clarke will share insights and tips, particularly on the following topics:
- Brief overview: What does the current financing environment look like?
- How do I find the “right” financing / the right investor?
- What are typical elements of investment agreements?
- Which provisions are particularly important and what do all the terms like pre- and post-money valuation, liquidation preference, anti-dilution protection, drag-along rights, vesting, etc. actually mean?
- What is negotiable with VC investors and business angels, and what isn’t?
- What alternatives are there to entering into a complex investment agreement?
