Lexicon venture capital defines the terms often used in an initial round of financing to provide seed creators and investors with general information and explanations of the terminology used in financing cycles. The appointment sheet, subscription contract and shareholder contract contained in vimA may require substantial changes as they are intended to be used for an initial financing round. Venture capital investments are becoming increasingly popular and widespread in Singapore and Southeast Asia, and this trend is expected to continue. Each investment may be unique, but founders and investors (and their respective advisors) don`t need to spend time and cost preparing and negotiating any investment from scratch, especially for start-up financing. In order to reduce transaction costs and reduce friction during the negotiation process, Investment Venture Capital Agreements (VIMA) offer a series of models for use in seed cycles and start-up financing. The appointment sheet, subscription contract and shareholder contract contain options and rights more suited to a Series A financing cycle (as opposed to an initial funding cycle) and based on the following assumptions: Please note that VIMA does not provide the full range of potential options available or appropriate for early-period financing cycles , because they often depend on the transaction or the parties involved. Depending on the circumstances, the parties must therefore, if necessary, adapt the specific conditions of the documents to their needs. Additional documentation may also be required for an early funding cycle (for example. B the creation of the company, the agreement of other investors, the employment contract of the founders, etc.).
However, we believe that the venture capital model agreements would remain relevant by providing a useful guide to the typical structure of funding cycles. A venture capital investment is a partnership between an investor and a growing company. To create a productive relationship that supports a fast-growing business, the partnership must be good for both the entrepreneur and the venture capitalist. In order to ensure the fairness of the agreement and to promote the interests of both parties, pay particular attention to the appointment sheet and the evaluation of your company. Model agreements can be downloaded from the CSA and SVCA website (click here to access the Singapore Law Watch and svca website). Each document contains an essay or explanation of the various clauses contained in the documents. The documents were also drafted on the basis of Singapore law and include Singapore law as a law in force and Singapore as a dispute settlement forum. In other words, the risk industry undergoes an expensive and inefficient process of „reinventing the disc tire” every day.