Enhanced Investors’ Rights Agreement 📃
Draft contracts while comparing terms against market benchmarks 📊
👋 Hey, Linas here! Welcome to a special issue of my daily newsletter. Each day I focus on 3 stories that are making a difference in the financial technology space. Coupled with things worth watching & most important money movements, it’s the only newsletter you need for all things when Finance meets Tech. If you’re reading this for the first time, it’s a brilliant opportunity to join a community of 215k+ FinTech leaders:
Navigating the investment realm demands more than capital – it requires clarity, foresight, and a solid understanding of ever-evolving market dynamics. That’s why today I’m excited to share the Enhanced Investors' Rights Agreement, your trusted ally in decoding the complexities of the venture world.
Global venture capital funding in the third quarter of 2023 reached $73 billion — up quarter over quarter yet down 15% from the $86 billion invested in Q3 2022, as per Crunchbase data.
Despite the uptick quarter over quarter, this is the second-lowest quarter since funding started to slide in 2022. The startup world is now 5 to 6 quarters into the current funding decline, according to Crunchbase data.
At the epicenter of this landscape, the NVCA's legal documents shine brilliantly, offering clarity in negotiations and reflecting the pulse of the evolving industry.
For more than 50 years, the NVCA has been a compass for startups, investors, and legal experts navigating the thrilling, complicated world of early-stage funding. And they recently released updated versions of the Investors' Rights Agreement.
These improved documents were developed together with bank research firm Aumni with one goal only - to provide better insight into the market environment for investment deals.
The data is derived from analyzing over 200,000 legal agreements executed by more than 90,000 VC investors. Dive deep and discover:
Information and observer rights scope
Qualified small business stock insights
Preferred director approval in vital decisions
Market insights like deal term usage, investor thresholds
Major investor details like pay-to-play, registration rights & more!
Use this 65-page document and chart your course with confidence as you draft contracts, leveraging the power of aligning terms with prevailing market benchmarks.
More importantly, understand the narrative behind the numbers and be at the forefront of impactful decisions 👇🏼