Venture capital firms - an overview:
The risk of investors who risk investment. Venture capital refers to capital investment bears a larger failure of dangerous high-tech development area, to the period after the success of a business investment behavior of high capital gains. Venture capital support in the market economic system is an important means of scientific and technological achievements, and its essence is the success of the project group by investing in a high-risk, high return projects, will be sold or listed to achieve the owner's equity realizable , then not only can compensate for the losses of failed projects, but also enable investors to earn high returns. We usually refer to the risk of investment, specifically refers to the investment activities of those associated with high-tech industrialization phase, referred to as the high-tech venture capital.
Venture capital firms - responsibilities:
In the venture capital market, venture capitalists investment funds to invest in venture companies, and therefore need to be very cautious in order to obtain high profits. And general investors in a dominant position, this stage many of the agreements and legal documents drafted by venture capitalists, lawyers, and lawyers are at a critical position. Its business and responsibilities include:
First, to assist the investor survey Ventures
High-risk venture capital, investors need to do comprehensive investigation of all aspects of understanding, in order to make rational decisions. Understand the scope of the company's history, business, product, the original share capital, management structure, intangible assets, external claims and liabilities and so on. Venture capital returns from the economic point of view will the company survey, but this time the lawyers from a legal perspective to assist in the careful investigation, the projects include: organizational forms and ownership structure; registered capital and funding in place; company managers true; of important personal information management with the company's labor contract and the contract with the previous employer, the main attention to the terms involving trade secrets; report and debts of the company's assets; the company's dealings, contracts and other legal documents; the company has the knowledge the authenticity and legitimacy of property rights; Litigation or arbitration cases; the relevant government approval documents in place. If the company provided false or all kinds of non-standard practices. The lawyers should submit written comments.
Second, to assist investors in commercial negotiations
The role of lawyers in the commercial negotiations can not be ignored, because many legal issues involved need to be resolved immediately, or it may make the terms of the negotiations in violation of our laws invalid, which may be very huge economic losses to the principal. At this time, the lawyer's duty: summary of the relevant legal issues, which can help investors to fully understand the law relating to feeling very sudden and frustrated, and will not in the negotiations; in the negotiations in addition to answer investors, but also legitimate, constructive comments in accordance with the actual situation of the negotiations, and inform both sides of its legal consequences for the client to choose.
Third, review and drafting of relevant legal instruments
Review of legal documents is a venture company to provide the cooperation plan, legal opinions, the new staff agreement, and need a lawyer to draft legal documents generally include legal opinions and investment agreements, one of the most important thing is that the investment agreement, because it is the basis of legal documents for this project, the agreement is complete and accurate, which directly affect the interests of both sides. Generally speaking, the draft investment agreement need to note the following:
An investment agreement is signed and the controlling shareholder of the company rather than risk the company; and because venture capital is not an ordinary way of corporate finance, investment is to get the company's equity, so the investment will affect the company's equity allocation and management of the company, so this The agreement should be signed and not signed and the company and shareholders.
2, the general shareholders' capital contribution in the form of transfer agreement. Venture capital investment in pursuit of high profits, high-risk, between the two sides should carry out a variety of special convention, and should not simply provide the content of the equity transfer agreement.
3, in terms of the agreement, in addition to the company's self-described, the contribution of the basic terms of the amount of return method should also be stated in accordance with the agreement to amend the company charter to strengthen the constraints of the Board of Directors of the Company and other agencies; investors investment, should be sent to enrich management, and specify whether to replace the manager; held by investors in the equity transfer and liquidation when priority; investors to fulfill the obligations of a prerequisite in order to reduce the risk of the investment side.
