What do you have to look for when negotiating your first term sheet, so it doesn’t affect future financing or M&A?
There’s a new term sheet in every round. The term sheets and investment documents of the seed round don’t have as significant an impact as, for example, a licensing agreement.
It’s best to structure your data room the way the document request is structured. If you upload documents for other types of due diligence, it makes sense to store your legal-relevant data in separate folders as well.
You can use one data room. In most cases, investors won’t be able to see who accessed the files anyway.
Investors often have their own in-house counsels. The founders or company have to pay the fees as part of the overall transaction costs.
Whether universities have real shares or phantom shares, investors usually don’t mind.
No, both are the same.
To prepare a data room, get the necessary support and pay legal fees, startups should calculate roughly CHF 7’500.–
Often, new agreements are concluded. If the current employment agreement doesn’t cover IP rights, you can enter into an amendment agreement. If an agreement with the service providers doesn’t foresee a clause that they transfer the IP rights afterward, you can make a separate transfer declaration. Severe issues have to be clarified with a patent lawyer.
Yes, that’s very often requested by investors.
No. They can recommend a firm, but they can’t force you to work with them.