Venture Capital Investment Model Agreement

The objective of the standard agreements is to reduce the need for companies to spend time and money preparing and negotiating venture capital investments, particularly in the initial phase of financing. The documents were developed by a committee of leading lawyers, investors and financiers. Each year, the venture capital industry completes thousands of funding cycles that attract a lot of time and effort from investors, management teams and lawyers. Conservatively, the sector spends about $200 million a year on direct legal fees to complete private funding cycles. In a situation that is too typical, lawyers begin with documents from recent funding, iterative to adapt the documents to their common point of view to appropriate language (which reflects the specifics of the agreement and the general best practices of the industry), and all parties examine many revisions dressed in black, in the hope of avoiding important questions, as the documents slowly arrive at their final form. The VENTURE capital agreements („VIMA“) were launched in October 2018 by the Singapore Academy of Law („SAL“) and the Singapore Venture Capital and Private Equity Association („SVCA“) in response to the rapid growth of venture capital and PE investments in Singapore and Southeast Asia. According to the SVCA, venture capital investment in Southeast Asia was $2.7 billion in 2017 and $3.2 billion in the first 8 months of 2018. In October 2014, the BVCA published a revised version of its leaflet model, the subscription and shareholder pact as well as the statutes, as well as accounting information on the handling of preferred shares (as a loan or equity in the company`s accounts). In September 2015, the statutes were amended to amend the Companies Act 2006 with respect to the legal requirements for companies to buy back derintendants. This standard sheet should be adapted to take into account the capital structure of the company (including all rights that existing investors may have). Venture capital investments are becoming increasingly popular and widespread in Singapore[1] 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.