Q. Does this model agreement mean that VCs and start-ups can now enter into financing agreements without taking over the services of a lawyer? Other investors may wish to amend the above clauses to provide that shareholders and board decisions and agreed documents must be approved by them. The objective is to ensure that they have a say in the form of such documents. Other investors may also consider that their legal, accounting and due diligence costs are borne by the company. If this is not the case, only the principal investor is compensated by the company up to a certain threshold for its costs. 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. Venture capital investments are becoming increasingly popular and widespread in Singapore 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. A incorporation model that reflects the terms of the standard shareholder contract can be a useful complement to VIMA documents.
(a) VIMA documents are comprehensive in their coverage of the most important legal concepts, which are typically contained in final agreements on the early stages of financing operations. This allowed the parties to enter into negotiations with a common understanding of the overall structure of final agreements and to focus their efforts on negotiating specific legal and trade conditions; A shareholders` pact defines the company`s main terms and conditions as well as the rights and obligations of investors and founders as shareholders of the company. 14.3 Any discovery, invention, secret process or improvement of the procedure, made or uncovered by a founder in the service of a company of the group or during a shareholder of the company in connection with or in connection with or in connection with the activity of the company, or able to be used or adapted for use in or in connection with the activity of the company , is disclosed to the company as soon as possible and belongs to the company and is the absolute property of the company of the group that appoints the company for this purpose. In order to avoid doubts, this agreement must not be used as an instrument of transmission and any transfer of intellectual property rights is carried out under a separate agreement. The Singapore Academy of Law and the Singapore Venture Capital – Private Equity Association launched the Venture Capital Model Agreements (VIMA) in October 2018. VIMA proposes a series of usage models in seed cycles and start-up financing, aimed at reducing transaction costs and reducing friction during the negotiation process. The VIMA document collection is available for free download at www.singaporelawwatch.sg and includes: (b) the time spent preparing final agreements reduces net (reducing net legal costs); This confidentiality agreement assumes that a company provides a potential investor with confidential information about itself.