Right of First Refusal

Different transaction agreements are executed between the parties for the purpose of purchase and sale of startups’ stock. One such important document is the Right of First Refusal and Co-sale agreement, usually executed in the framework of an NVCA document-based financing transaction. A Right of First Refusal and Co-sale agreement is a multi-party agreement, and … Read more Right of First Refusal

Main Difference between Pre-Money and Post-Money SAFE

safe agreement

Simple Agreement for Future Equity (SAFE) is a legal agreement between startup and investor. Startups use SAFEs to raise capital mostly (but not only) during their seed financing rounds. There are different types of SAFEs, and in this article, we will discuss Pre-Money and Post-Money SAFEs and how they differ from each other. To understand … Read more Main Difference between Pre-Money and Post-Money SAFE

Pro-Rata Participation Rights – What does it mean and what should you pay attention to?

grant existing shareholders or investors in convertible instruments such as SAFE

Meaning of Pro-Rata Participation Rights Pro-rata participation rights, also known as pro-rata investing rights, or preemptive rights, grant existing shareholders or investors in convertible instruments such as SAFE, the right to participate in subsequent fundraising rounds. The right allows them to maintain, and sometimes to increase, their percentage ownership in the entity. The right is … Read more Pro-Rata Participation Rights – What does it mean and what should you pay attention to?

Management Rights Letter: An Overview

venture capital

Various documents are involved in the process of venture capital investment, one of them is a management rights letter also known as an MRL, which is sometimes requested by venture investors. An MRL ensures that the investors have access to the essential information regarding the working of a company, and grants various other necessary rights … Read more Management Rights Letter: An Overview

Important Notes on Non-Disclosure Agreement (NDA)

Non-Disclosure Agreement

What is an NDA? A non-disclosure agreement or NDA is an agreement used by parties to create a legal obligation not to disclose or use confidential information. Such confidential information mainly includes trade secrets, innovative ideas, etc., that are of utmost importance for the company’s business. There are various instances when companies need to share … Read more Important Notes on Non-Disclosure Agreement (NDA)

Why and Where You Should Incorporate Your Next Startup

Why and Where You Should Incorporate Your Next Startup - Photo

Not sure why and how you should incorporate your startup? Considering several alternatives? Incorporating a new startup is usually a very technical and mostly simple process that requires filling out documents and signing standard forms. There are, however, several elements to consider with your advisors before rushing into this process. Why should you incorporate? It’s … Read more Why and Where You Should Incorporate Your Next Startup