When a venture capital or private equity fund invests in a startup, it can negotiate preferred rights through the creation of classes of shares. This mechanism aligns interests and protects investments, optimizing returns and ensuring economic and governance privileges for the investor.
The judicial approval of a restructuring plan represents a vital mechanism for the debtor, protecting essential business aspects necessary to ensure survival.
Phantom Shares are innovative incentives that mimic stock ownership without transferring actual ownership, offering beneficiaries future payments linked to business success. Discover how Phantom Shares drive talent retention and growth in venture capital funds.
As part of the efforts to stimulate the digital economy in Spain, the FOCO and Next-Tech Funds represent an appealing opportunity for foreign investors seeking to access the Spanish market and capitalize on its growth potential.
The innovation and scalability characteristics of companies aiming to benefit from the Startup Law have recently been defined and developed in Order PCM/825/2023 of 20 July. It establishes the general presumptions and characteristics that startup applicants must meet to qualify and be certified as “startups” by ENISA.
Spain is consolidating as an increasingly attractive destination for Venture Capital Funds. Economic stability, internal market consistency, and governmental support, among other factors, drive a constant growth in profitability for both national and foreign investors.
In an investment round of a startup, the shareholders usually sign an investment and/or a shareholders’ agreement to establish the guidelines for their arising relationship. Although the specifics may differ based on each company and its shareholders, these agreements usually contain some key clauses. In this article, Carla Rissmann provides an explanation of the content and purpose of these clauses.
The economic unit encompasses the active and passive elements constituting a ‘company’ or ‘autonomous productive unit’ within the company. The transfer of an authentic economic unit is an essential requirement for partial spin-offs in Spain.
Venture capital funds provide companies with the necessary liquidity for their growth and development, typically through a process known as a funding round. In these processes, it is essential to assess the key issues and contractual clauses that these entities must consider to ensure the success of their investments.
Securing capital is vital for startup success, and funding round are pivotal. Clear objectives, meeting diverse investors, precise structuring, legal compliance, thorough due diligence, and transparent negotiation are crucial.
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