Purpose of Valuation Cap in SAFE
Yair Udi
June 27, 2022
SAFE is an agreement used by startups mainly to raise funds during their seed financing rounds. By using a SAFE,...
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No Shop Provision in Term Sheet and its Implications
Yair Udi
June 19, 2022
A term sheet outlines the rights and obligations of parties involved in private equity transactions. Generally speaking, most term sheets...
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Why Breakup Fee clauses needed in M&A transactions?
Yair Udi
June 8, 2022
Breakup fee clause, also known as “termination fee” clause, is often included in the Letter of Intent, a Memorandum of...
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What are Protective Provisions (or veto rights), why do investors insist on having them and how founders should negotiate them?
Yair Udi
June 1, 2022
Protective provisions or veto rights are usually granted to the preferred stockholders (stockholders’ purchasing preferred stock) and they allow them...
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Benefits of SAFE for Startup Founders
Yair Udi
May 26, 2022
Simple Agreement for Future Equity, also known as SAFEs, is an agreement mainly (but not only) used by founders to...
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Right of First Refusal
Yair Udi
May 11, 2022
Different transaction agreements are executed between the parties for the purpose of purchase and sale of startups’ stock. One such...
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Main Difference between Pre-Money and Post-Money SAFE
Yair Udi
April 26, 2022
Simple Agreement for Future Equity (SAFE) is a legal agreement between startup and investor. Startups use SAFEs to raise capital...
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Pro-Rata Participation Rights – What does it mean and what should you pay attention to?
Yair Udi
March 24, 2022
Meaning of Pro-Rata Participation Rights Pro-rata participation rights, also known as pro-rata investing rights, or preemptive rights, grant existing shareholders...
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