Carrying out a financing round and the ongoing cooperation between investor and company are legally governed by a complex investment agreement along with various annexes and accompanying documents. It is customary 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 closing a financing round.
What needs to be considered when negotiating the term sheet and the contractual agreements, and what should I definitely know before entering into discussions with investors? Is a classic financing round with an investment agreement even the right path for me?
Dr. Martin Sundermann & Dr. Felix Dörrenbächer from Osborne Clarke provide insights and tips, particularly on the following topics:
- Brief overview: What is the current financing environment like?
- How do I find the “right” financing / the matching investor?
- What are typical elements of investment agreements?
- Which provisions are particularly important and what do the many terms like pre- and post-money valuation, liquidation preference, anti-dilution protection, drag-along obligations, vesting, etc. mean?
- What is negotiable with VC investors and business angels, and what is not?
- What alternatives are there to concluding a complex investment agreement?
