Drag Along Right

The Drag Along Right is a mechanism whose purpose is the protection of the majority shareholders of the Company and it establishes itself as the Tag Along Right counterpart, which we have previously reviewed, and which aims to safeguard the minority shareholders interests.

Vesting Clause Application

When setting up for a new venture it becomes necessary to take some safeguard measures, be them between Founders or between these and workers. In previous posts we reviewed some of these contractual arrangements, such as the Non-Disclosure or Non-Compete Agreements. These contracts are intended to protect a Company’s intangible asset: Information. These assets may… Read More Vesting Clause Application

Non-Compete Agreement

Previously in a post in this blog we dealt with the Non-Disclosure Agreement, which in broad terms is about the agreement that the involved parties sign, in order for one or both of them, to refrain from sharing sensitive or classified information about the business at stake with third parties. Thus, avoiding damages that may… Read More Non-Compete Agreement

Dealing with Equity Splitting

Negotiation over founder equity can be a particularly challenging task. But it’s one of the key decisions that a founding team must take beforehand in order to avoid future disputes and disagreements, broken relationships and the company’s paralysis. So, once you’re all set, it’s time to sit down with your co-founder or employee for the… Read More Dealing with Equity Splitting

Abstracts on the “Legals” of Funding from Paul Graham (Part 2)

Paul Graham, Founder of Y Combinator wrote a very good post on 2005 on How to Fund a Startup? Check Part 1. In this opportunity we present here all the paragraphs of the post that refer to legal issues related with the funding process, so readers can have a quick idea on the matter. But for… Read More Abstracts on the “Legals” of Funding from Paul Graham (Part 2)

Abstracts on the “Legals” of Funding from Paul Graham (Part 1)

Paul Graham, Founder of Y Combinator wrote a very good post on 2005 on How to Fund a Startup? In this opportunity we present here all the paragraphs of the post that refer to legal issues related with the funding process, so readers can have a quick idea on the matter. But for any founder who… Read More Abstracts on the “Legals” of Funding from Paul Graham (Part 1)

Non-Disclosure Agreement (NDA)

It’s an agreement in which a party (individuals or companies) undertakes not to release or disclose certain information received from another party (usually siting at the other side of the negotiation table). The release of sensitive information will usually occur during a negotiation process or during a business relation between 2 or more parties.

Exclusivity

It’s very common when sitting to the table to negotiate a service, supply or distribution contract, between a Startup and a big company, that the latter requires to include in the agreement provisions referring to exclusivity in the sale, service or distribution from the Startup.