But we look at things from the startup founders’ side. Let’s see the mistakes to avoid. The right term sheet to deal with a Venture Capital By “ term sheet ” we mean a whole series of clauses set by Venture Capital for the granting of funds in exchange for shares. In this document there are a whole series of elements that can allow the startupper to maintain control of the company . There are two key points in the term sheet that must be carefully evaluated. The first concerns the pre-emption on the sale of the shares that will be under the control of Venture Capital. It does not mean that the latter is obliged to resell his shares to one of the founders, but that they will be able to pay the sale price and regain possession of the shares.
This clause is also
important regarding another New Zealand Phone Number List point which we will discuss shortly. The other truly fundamental point concerns the non-dilution clause . In the event of a capital increase and the entry of new people into the startup. The Venture Capital maintains the same percentage of shares. It is therefore clear that, in the long term, the share held by the financier could become increasingly. Important, while that of the founding members will be increasingly marginal. The pre-emption clause for the transfer of the shares of the founding members One of the most important issues regarding the control of a startup concerns the relationships between the founding members . Ownership of shares is usually equally divided, but this is not a rule. When a Venture Capital enters, the overall percentage of founding members obviously reduces.
Furthermore Venture
Capital can decide to try to acquire one Italy Phone Number List of the shareholders’ shares to take control of it. The original statute of the startup must therefore include such a clause. A safe startup with reliable investors For those who decide to start a startup, there are many doubts from a legal and financing point of view. For this reason it is essential to have experts at your side who know how to help you make the right choices . With Up2Lab you can follow your path of creation and growth of your startup without worries. And the approach with Venture Capital will be profitable and risk-free. Get in touch with us for an information meeting.