Shareholders Investment Agreements

Shareholders Investment Agreements

In the investment agreement, there may be a provision that indicates the intention of the parties to try to withdraw, for example. B a listing of the company on a recognized exchange or a sale of the company within a specified period (usually 3 to 5 years). This intention is generally related to the recognition that an investor will not provide any guarantee or compensation for the company`s operations and business in the event of an exit, along with other guarantees as to its ability to sell its shares. If the investment in a life sciences company is realized, with the exception of IP guarantees, the remaining guarantees in their application will be quite limited due to the company`s limited business history. IP guarantees in life sciences investments, regardless of the phase of the business, are, in most cases, more detailed and important than others, because of the value, breadth and complexity of the IP they own or the products they want to create and/or develop. Guarantees are likely to be even more important if a life sciences company goes through a second or second investment cycle. Society is also often non-partisan, as this adds some certainty that the agreement is being respected (for example. B it is possible that the members of the company`s board of directors do not participate in the shareholders` pact and are therefore not bound by the agreement). However, since the company is bound by the agreement, the board of directors must also follow it.) For investors, we`ll talk to you about the investment and financing structure you`re entering, and how best to protect your funds and ensure that the right legal framework for your performance is protected. Leaver`s events are related to Vesting. If investors invest in the company, they expect the founders to continue to move the company forward. To do this, investors generally need some kind of blocking period.

During this period, stocks are disoriented. In a share subscription agreement, it is said that the investor in exchange for an agreed investment amount has subscribed shares in the company. Then the company will issue these agreed shares to the investor. It is typical that the closing conditions are linked to each subsequent investment tranche. This often includes: founders and important collaborators are the most important part of the start-up. But it`s a fact of life that things don`t always happen according to plans and people leave the company. Since the founders are the main shareholders of a startup, it is important to agree on what happens to their property if they leave the start-up (a leaver event).