One of our primary areas of practice is Investment Law, a specialized field of legal practice that governs relationships between investors, startups, and venture capital funds. Venture capital is among the most effective tools for business development, especially for technology companies requiring rapid growth and scalability. Through venture financing, startups can obtain the necessary resources to implement innovative ideas, while investors gain opportunities to profitably invest in promising projects.
Legal support for venture investments is crucial because the protection of your interests, effective capital raising, and the success of investment projects heavily depend on sound legal decisions. Our law firm possesses extensive experience working with venture capital funds, startups, and investors, ensuring legal transparency and efficiency in all transactions.
Main Areas of Investment Law
Venture Financing. Venture financing involves investments in startups at their early development stages. The key advantages of such funding include quick access to capital, flexible financing terms, and the potential for exponential business growth. We help structure venture deals to balance the interests of both parties and minimize legal risks.
Legal Support of Investment Transactions.Our lawyers provide a full range of legal services for venture transactions, from drafting essential documents (Term Sheets, Shareholders Agreements) to startup Due Diligence and comprehensive support at all stages of negotiations.
Protection of Investors’ Rights.Investors require maximum legal certainty that their funds and interests are well-protected. We assist in creating clear mechanisms to protect investor rights, ensuring control and transparency in all investment operations.
Venture Investments: Fundraising Mechanism
Investment Funds and Legal Aspects of Their Establishment. We specialize in establishing venture funds in Ukraine and abroad. Our specialists provide comprehensive legal assistance throughout the fund-formation process, considering the regulatory specifics of each jurisdiction.
Contracts Between Startups and Investors (Term Sheets, SHA). Term Sheets and Shareholders Agreements are the foundational documents of any venture transaction. We ensure their proper drafting, accounting for all nuances required for successful deals.
Due Diligence in Venture Transactions. We conduct legal audits (Due Diligence) of startups before concluding agreements, minimizing investor risks and ensuring investment transparency.
Structuring Investment Transactions
Types and Features of Investment Deals. We work with various types of investment deals—Convertible Notes, SAFE (Simple Agreement for Future Equity), Equity Investments. Our experience enables us to select the optimal option tailored to clients’ specific objectives.
Risk Assessment and Legal Support During Contract Execution. Our firm provides legal support for contract execution, including detailed risk assessment and legal advisory throughout the transaction process.
International Venture Investing: USA, Europe, and Asia
Venture Investing in the U.S. (Silicon Valley, Delaware). The U.S. is the world’s largest hub for venture investments. We have experience in legal support for deals in Silicon Valley and Delaware, helping clients establish entities such as C-corporations and LLCs.
Investing in Europe (UK, Estonia, Germany). We support investments in Europe, including jurisdictions like the UK, Estonia, and Germany, favorable for startups due to their tax-friendly environments and transparent legal systems.
Venture Investment Opportunities in Asia (Singapore, China). Asia is a dynamically developing region for tech startups. We assist our clients in investing in Singapore, China, and other Asian countries, ensuring compliance with local regulations.
Frequently Asked Questions (FAQs):
What legal documents are needed for venture investments? The primary documents include Term Sheet, Shareholders Agreement (SHA), Convertible Note, SAFE Agreement, and Due Diligence documentation.
How can investors legally protect their rights? To protect investor rights, it’s essential to conclude a clear Shareholders Agreement, establish control mechanisms, protect intellectual property rights, and clearly define exit strategies.
What are the specifics of venture investing in the U.S.? Common structures in the U.S. include Delaware-based C-corporations, the use of SAFE agreements and Convertible Notes, a highly developed venture investment culture, and comprehensive legal regulations.
How to create a venture fund in Ukraine? It requires registering a company (typically an LLC or limited partnership), preparing investment documentation, obtaining a license (if necessary), and attracting investors in compliance with Ukrainian legislation.
What is a Term Sheet, and why is it necessary? A Term Sheet defines the key terms of a future investment agreement, including investment amounts, company valuation, investor rights, and exit procedures
What exit strategies do venture investors commonly use? Main exit strategies include mergers and acquisitions (M&A), initial public offerings (IPO), selling shares to other investors, or buyouts by founders.
