Negotiating a Venture Capital Deal (II): Structuring the Agreement and Contractual Instruments

Description

When it comes to structuring operations, regardless of their nature, venture capital investors basically seek to maximize returns, minimize financial risk, and provide coverage against any conflicts of interest that may arise with the managers of the companies they invest in. To this end, when arranging investment agreements, they negotiate adding a series of control mechanisms and methods for assigning resources. This technical note briefly describes these financial methods and mechanisms and analyzes the underlying reasons for their use and application.

Related Documents

• Negotiating a Venture Capital Deal (I): Preparation and Defining Expectations
• Negociando una operación de capital riesgo (I): Preparación y configuración de expectativas
• Negotiating a Venture Capital Deal III: Structuring a Buy-Out
• Negociando una operación de capital riesgo(III): Estructuración de una operación de "buy-out"

Keywords

Entrepreneurs investment Management Buy-out Negotiation Start-up Financing Venture capital