Investment lawyers will review the new business investment agreement for startups together.

Law firm Veat undertook legal review of the investment agreement necessary for a new business venture, commissioned by A Corporation (a manufacturer of capacitors), in response to the client’s request to enter a new business area.

The client planned to enter a new business area and, in order to examine whether the existing investment agreement conflicted with it, requested Veat Law Firm’s Investment Focused Investment Advisory Team to review the investment agreement necessary for a new business venture.

When a startup makes a major decision such as entering a new business or establishing a subsidiary, startups generally need ‘Investor Approval’ because unforeseen matters can arise in the early investment stage. Therefore, the investment agreement should clearly include discussions and agreements with investors.

Complexity of New Business Venture and Importance of Investment Agreement

The growth and evolution of startups are the core of changing business environments. This growth and change is underpinned by attracting investments, and in this process, the role of the investment agreement is extremely important. The investment agreement is the core document that defines the rights and obligations of investors and startups and their future direction.

Veat Law Firm’s Investment Advisory Team deeply understands the complexity and importance of investment agreements, and provides professional advice by carefully reviewing the investor approval process and investment agreements needed when entering a new business venture.

Safe New Business Venture with Veat Law Firm’s Investment Focused Advisory Team

The Investment Advisory Team has provided advice to various clients including venture capital (VC) firms and startups related to investments, and there is a case where they provided legal review for the investor approval and drafting of contracts in the process of another client expanding their business.

When Client A attempted to acquire a portion of the business of another company, the Investment Advisory Team drafted the business transfer agreement in detail, and in this process, they provided specific advice on detailed matters such as the specific content of the acquired business, financial assets, licenses, company vehicles, and the change of names, inheritance of contracts.

Furthermore, considering the fact that there are many investors to the client, they provided advice on what aspects should be considered from a legal perspective such as investor approval.

Law firm Veat recorded 2nd place in terms of total transaction count based on the Bloomberg Q1 2023 league table (ranking of M&A legal advisory) and was selected as ‘Finalist’ for ‘Korea Deal Firm’ for two consecutive years at ‘ALB Korea Award 2022’ which recognized their expertise and professionalism.

If you want to prepare for a safe new business venture for the growth and change of startups, please contact Veat Law Firm - Business Growth Guardian.