Singapore has in recent years become a flourishing hub for the start-up and venture capital ecosystem. Investors and founders in this region bring with them diverse geographic, risk tolerance, and deal-making backgrounds, and therefore there is often significant variation in expectations, as compared to Silicon Valley and China. As the ecosystem is maturing and sustaining more growth stage investments, it is essential for entrepreneurs and investors to structure venture capital investment terms that properly align investors and companies, taking into account each side’s operating needs and financial objectives. This module is designed to provide you with a deep dive into seven essential terms that are often negotiated in VC financings:
- Founder Liability
- Reserved Matters / Protective Provisions
- Pre-emptive rights over new issuances
- Lock-Ups /Rights of First Refusal/Tag-Along Rights
- Liquidation Preferences
This module will be presented by Mr Thomas Chou (Partner) from Morrison Foerster LLP.
- Learn the background of these key terms, including how they evolved in the US (based on the model legal documents adopted by the United States National Venture Capital Association (“NVCA)”) and in China.
- Use such historical perspectives to make informed arguments and agreements on the appropriate terms for Southeast Asian start-ups in the present day.
- Customize the VIMA model documents to better reflect the agreed-upon terms (ideally with the support of experienced counsel) into properly functioning contractual provisions.