[Consultation] Review of Startup Common Stock Investment Agreement

Law firm Veat reviewed the common stock investment agreement on behalf of eco-startup A Corp.

Eco-startup A Corp. requested a legal review of the common stock investment agreement, which was delivered to them from B Investment Corp. during the process of attracting additional investment.

Law firm Veat discovered relatively strict provisions in the common stock investment agreement and proposed an amendment in A Corp.’s favor, including the removal of declaration and guarantee clauses, removal of director nomination rights, removal of the right to call for shareholder meetings and board of directors meetings, and removal of the joint and several liability clause.

Given that common stock investment agreements are typically related to initial investments for startups and involve relatively small investment amounts, legal review may be overlooked. However, even if the investment agreements are from the same round, the specific clauses can vary among investment firms, and these clauses can have a significant impact on subsequent investment agreements as the company grows. Therefore, it is advisable to seek assistance from legal experts when conducting investment agreements from the initial stage.

Law firm Veat has assisted numerous early-stage companies in achieving swift and successful investment attraction, having achieved 4th place in the 2021 annual Bloomberg League Table, based on transaction volume.

If you need legal advice regarding common stock investment agreements, startup investment agreements, or startup investment attraction, please contact Law firm Veat at any time.

Thank you.
Law firm Veat