Archives

Fundraising in a startup company is usually made by one of several investment instruments – SAFE, CLA or SPA, each of which is suited to a different stage

Certain investors may wish to make sure that upon a liquidation or exit event of the company their investment shall be first returned to them, prior to distributions to the other shareholders of [...]

Veto rights basically provide certain shareholders of the company or the directors appointed by them the power to prevent the company from taking certain actions without their approval. Such veto [...]

When a company offers to issue new securities, each of the shareholders which is entitled to the Preemptive Right shall have the right to participate in such issuance and purchase its pro-rata [...]

Options are the right to purchase shares at a pre-defined price, which is called the “Exercise Price”, at a defined period of time and under certain terms predetermined between the company and [...]

A capitalization table is a list specifying the holdings of each shareholder or other holder of securities of the company (such as options) and the types of securities of the company. How does [...]

Investors usually have an active role in a company’s success which exceeds their actual investment of funds in the company. Such role usually materializes by the investor’s creation of industry [...]