[Consultation] Review of Investment Contracts for Pre A Series Investment Company

Law firm Veat received a referral from a company receiving a Series A funding round and conducted legal review of the investment agreement.

Law firm Veat meticulously reviewed the investment agreement from the perspective of the company receiving the investment.

Law firm Veat provided legal review opinions regarding provisions that could be disadvantageous to companies generally, such as consent and negotiation clauses, provisions related to new shares, and stock purchase rights/penalties.

Furthermore, while most clauses in the investment agreement were largely adopted from standard contracts distributed by the Small and Medium Business Finance Corporation and the Venture Capital Association, most of the clauses were drafted neutrally, and contained elements unfavorable to the company, so it was comprehensively reviewed to maximize benefits for the client.

In particular, we advised the client to revise or delete provisions that were disadvantageous to the client, even if they were not included in the Term-sheet.

In the case of investment agreements, even within the same round, the content differs greatly among investment firms, and can influence the next stage of execution, so it is advisable to consult with a lawyer who has expertise in drafting and executing investment agreements at the initial stage of the business, and to prepare for the next stage of execution in the future.

Law firm Veat achieved 4th place in the 2021 Bloomberg League Table based on transaction volume, and Law firm Veat provided legal advice on over 99 investment and M&A transactions during 2021.
Notably, it successfully executed large deals exceeding 100 billion won, demonstrating its trust and expertise.

Thank you.
Law firm Veat Dream