Feld Thoughts
FEBRUARY 28, 2023
KG companies have decisive tax disadvantages for startups and are, therefore, rarely used in this area. There are also legal differences: Registration Rights, for example, are not legally binding. Piggyback rights are permissible, but due to legal regulations, they are not mandatory. German Startups Association).
Startup Company Lawyer
MARCH 14, 2010
In addition, I think that a “peace treaty&# between early-stage investors and startup companies on standard terms (at least at a term sheet level) is a step in the right direction. Future rights. then the holders of the Series Seed get these better rights. Right of first offer on future financings.
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Altgate
MAY 14, 2009
On the investment side, it means putting in less money, being more on-par with management in terms of rights and preferences, having less control. The investment won’t work if you spend $80K on legal fees preparing investment documents that include things like registration rights and all those other terms that will never get used.
The Startup Lawyer
MARCH 1, 2010
The drafters are “open sourcing&# the documents so that they may be continually improved by the startup community. The Amended and Restated Certificate of Incorporation includes the typical provisions you might find in a VC deal, less (i) preferential dividends, (ii) redemption rights, and (iii) price based anti-dilution.
The Startup Lawyer
MARCH 1, 2010
The drafters are “open sourcing&# the documents so that they may be continually improved by the startup community. The Amended and Restated Certificate of Incorporation includes the typical provisions you might find in a VC deal, less (i) preferential dividends, (ii) redemption rights, and (iii) price based anti-dilution.
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