<h2 id="legal-aspects-of-early-stage-fundraising" class="group relative whitespace-pre-wrap -ml-2 pl-2 scroll-mt-20 sm:scroll-mt-5"><a href="#legal-aspects-of-early-stage-fundraising" class="absolute top-1 -left-5 opacity-0 border-0 group-hover:opacity-100" aria-hidden="true" tabindex="-1" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none" target="_blank" rel="noopener noreferrer"><div class="w-6 h-6 text-slate-500 ring-1 ring-slate-900/5 rounded-md shadow-sm flex items-center justify-center hover:ring-slate-900/10 hover:shadow hover:text-slate-700 dark:bg-slate-700 dark:text-slate-300 dark:shadow-none dark:ring-0"><svg class="w-4 h-4" viewBox="0 0 24 24" fill="none" stroke-width="1.5" stroke="currentColor" aria-hidden="true"><path d="M13.19 8.688a4.5 4.5 0 011.242 7.244l-4.5 4.5a4.5 4.5 0 01-6.364-6.364l1.757-1.757m13.35-.622l1.757-1.757a4.5 4.5 0 00-6.364-6.364l-4.5 4.5a4.5 4.5 0 001.242 7.244" stroke="currentColor" stroke-linecap="round" stroke-linejoin="round"></path></svg></div></a>Legal aspects of early stage fundraising</h2><p><strong><em>By Gabby (Sr Legal Counsel at Fondia) and Olof (Legal Counsel at Fondia)</em></strong></p><div><div style="position: relative; padding-top: 56.25%" class="flex-1"><iframe src="https://www.youtube.com/embed/7ECXBk7MXGI" frameborder="0" style="position: absolute; top: 0; left: 0; width: 100%; height: 100%" allowfullscreen></iframe></div></div><p>A SUP46 exclusive workshop on the main legal aspects around early stage fundraising. During this session Gabby (Sr Legal Counsel at Fondia) and Olof (Legal Counsel at Fondia) will be sharing their knowledge on the process and the paperwork to make your fundraising successful and structured.</p><h2 id="timestamps" class="group relative whitespace-pre-wrap -ml-2 pl-2 scroll-mt-20 sm:scroll-mt-5"><a href="#timestamps" class="absolute top-1 -left-5 opacity-0 border-0 group-hover:opacity-100" aria-hidden="true" tabindex="-1" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none" target="_blank" rel="noopener noreferrer"><div class="w-6 h-6 text-slate-500 ring-1 ring-slate-900/5 rounded-md shadow-sm flex items-center justify-center hover:ring-slate-900/10 hover:shadow hover:text-slate-700 dark:bg-slate-700 dark:text-slate-300 dark:shadow-none dark:ring-0"><svg class="w-4 h-4" viewBox="0 0 24 24" fill="none" stroke-width="1.5" stroke="currentColor" aria-hidden="true"><path d="M13.19 8.688a4.5 4.5 0 011.242 7.244l-4.5 4.5a4.5 4.5 0 01-6.364-6.364l1.757-1.757m13.35-.622l1.757-1.757a4.5 4.5 0 00-6.364-6.364l-4.5 4.5a4.5 4.5 0 001.242 7.244" stroke="currentColor" stroke-linecap="round" stroke-linejoin="round"></path></svg></div></a>Timestamps :</h2><p><a target="_blank" rel="noopener noreferrer nofollow noopener noreferrer" href="https://www.youtube.com/watch?v=7ECXBk7MXGI&#x26;t=0s" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none">00:00</a> Intro &#x26; About <br><a target="_blank" rel="noopener noreferrer nofollow noopener noreferrer" href="https://www.youtube.com/watch?v=7ECXBk7MXGI&#x26;t=107s" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none">01:47</a> Agenda <br><a target="_blank" rel="noopener noreferrer nofollow noopener noreferrer" href="https://www.youtube.com/watch?v=7ECXBk7MXGI&#x26;t=156s" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none">02:36</a> Different ways to raise equity <br><a target="_blank" rel="noopener noreferrer nofollow noopener noreferrer" href="https://www.youtube.com/watch?v=7ECXBk7MXGI&#x26;t=263s" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none">04:23</a> SAFE - Don't use it in Sweden <br><a target="_blank" rel="noopener noreferrer nofollow noopener noreferrer" href="https://www.youtube.com/watch?v=7ECXBk7MXGI&#x26;t=426s" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none">07:06</a> SAFE - What are the alternatives? (WISE &#x26; Convertible Loan) <br><a target="_blank" rel="noopener noreferrer nofollow noopener noreferrer" href="https://www.youtube.com/watch?v=7ECXBk7MXGI&#x26;t=600s" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none">10:00</a> Process &#x26; Paperwork <br><a target="_blank" rel="noopener noreferrer nofollow noopener noreferrer" href="https://www.youtube.com/watch?v=7ECXBk7MXGI&#x26;t=1018s" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none">16:58</a> The Process (NDA, Term Sheet, CLA, Subscription/Investment Agreement, SHA) <br><a target="_blank" rel="noopener noreferrer nofollow noopener noreferrer" href="https://www.youtube.com/watch?v=7ECXBk7MXGI&#x26;t=1157s" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none">19:17</a> Term Sheet <br><a target="_blank" rel="noopener noreferrer nofollow noopener noreferrer" href="https://www.youtube.com/watch?v=7ECXBk7MXGI&#x26;t=1453s" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none">24:13</a> Convertible Loan Agreement <br><a target="_blank" rel="noopener noreferrer nofollow noopener noreferrer" href="https://www.youtube.com/watch?v=7ECXBk7MXGI&#x26;t=1659s" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none">27:39</a> Investment Agreement <br><a target="_blank" rel="noopener noreferrer nofollow noopener noreferrer" href="https://www.youtube.com/watch?v=7ECXBk7MXGI&#x26;t=1840s" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none">30:40</a> Warranty <br><a target="_blank" rel="noopener noreferrer nofollow noopener noreferrer" href="https://www.youtube.com/watch?v=7ECXBk7MXGI&#x26;t=1845s" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none">30:45</a> Shareholders' Agreement (SHA) <br><a target="_blank" rel="noopener noreferrer nofollow noopener noreferrer" href="https://www.youtube.com/watch?v=7ECXBk7MXGI&#x26;t=2080s" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none">34:40</a> What to regulate in a SHA and how to protect your influence <br><a target="_blank" rel="noopener noreferrer nofollow noopener noreferrer" href="https://www.youtube.com/watch?v=7ECXBk7MXGI&#x26;t=2140s" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none">35:40</a> Vesting <br><a target="_blank" rel="noopener noreferrer nofollow noopener noreferrer" href="https://www.youtube.com/watch?v=7ECXBk7MXGI&#x26;t=2399s" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none">39:59</a> Example Vesting clauses for founders <br><a target="_blank" rel="noopener noreferrer nofollow noopener noreferrer" href="https://www.youtube.com/watch?v=7ECXBk7MXGI&#x26;t=2483s" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none">41:23</a> Q&#x26;A <br><a target="_blank" rel="noopener noreferrer nofollow noopener noreferrer" href="https://www.youtube.com/watch?v=7ECXBk7MXGI&#x26;t=2660s" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none">44:20</a> How to use free templates (often badly adapted to the purpose) <br><a target="_blank" rel="noopener noreferrer nofollow noopener noreferrer" href="https://www.youtube.com/watch?v=7ECXBk7MXGI&#x26;t=3178s" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none">52:58</a> Patent Law vs Copyright Law</p><p></p><h2 id="different-ways-to-raise-equity-0236" class="group relative whitespace-pre-wrap -ml-2 pl-2 scroll-mt-20 sm:scroll-mt-5"><a href="#different-ways-to-raise-equity-0236" class="absolute top-1 -left-5 opacity-0 border-0 group-hover:opacity-100" aria-hidden="true" tabindex="-1" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none" target="_blank" rel="noopener noreferrer"><div class="w-6 h-6 text-slate-500 ring-1 ring-slate-900/5 rounded-md shadow-sm flex items-center justify-center hover:ring-slate-900/10 hover:shadow hover:text-slate-700 dark:bg-slate-700 dark:text-slate-300 dark:shadow-none dark:ring-0"><svg class="w-4 h-4" viewBox="0 0 24 24" fill="none" stroke-width="1.5" stroke="currentColor" aria-hidden="true"><path d="M13.19 8.688a4.5 4.5 0 011.242 7.244l-4.5 4.5a4.5 4.5 0 01-6.364-6.364l1.757-1.757m13.35-.622l1.757-1.757a4.5 4.5 0 00-6.364-6.364l-4.5 4.5a4.5 4.5 0 001.242 7.244" stroke="currentColor" stroke-linecap="round" stroke-linejoin="round"></path></svg></div></a>Different ways to raise equity (<a target="_blank" rel="noopener noreferrer nofollow noopener noreferrer" href="https://www.youtube.com/watch?v=7ECXBk7MXGI&#x26;t=156s" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none">02:36</a>)</h2><ul><li><p>Issue of shares (nyemissioner)</p></li><li><p>Simple Agreement for Future Equity (SAFE) --> <strong><em>don't do that in Sweden</em></strong></p></li><li><p>Warrants for Investment in Startup Equity (WISE)</p></li><li><p>Convertible Loan Agreement</p></li></ul><h2 id="convertible-loan-agreement-2413" class="group relative whitespace-pre-wrap -ml-2 pl-2 scroll-mt-20 sm:scroll-mt-5"><a href="#convertible-loan-agreement-2413" class="absolute top-1 -left-5 opacity-0 border-0 group-hover:opacity-100" aria-hidden="true" tabindex="-1" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none" target="_blank" rel="noopener noreferrer"><div class="w-6 h-6 text-slate-500 ring-1 ring-slate-900/5 rounded-md shadow-sm flex items-center justify-center hover:ring-slate-900/10 hover:shadow hover:text-slate-700 dark:bg-slate-700 dark:text-slate-300 dark:shadow-none dark:ring-0"><svg class="w-4 h-4" viewBox="0 0 24 24" fill="none" stroke-width="1.5" stroke="currentColor" aria-hidden="true"><path d="M13.19 8.688a4.5 4.5 0 011.242 7.244l-4.5 4.5a4.5 4.5 0 01-6.364-6.364l1.757-1.757m13.35-.622l1.757-1.757a4.5 4.5 0 00-6.364-6.364l-4.5 4.5a4.5 4.5 0 001.242 7.244" stroke="currentColor" stroke-linecap="round" stroke-linejoin="round"></path></svg></div></a>Convertible Loan Agreement (<a target="_blank" rel="noopener noreferrer nofollow noopener noreferrer" href="https://www.youtube.com/watch?v=7ECXBk7MXGI&#x26;t=1453s" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none">24:13</a>)</h2><ul><li><p>When the loan may (or shall) be converted to shares or repaid : <br>- Exit, Equity Financing Event<br>- Long-Stop-Date</p></li><li><p>Discount<br>- Compensation for the risks associated with the investment <br>- 15-30% of the subscrition price of next investment round (usually lower in beginning)</p></li><li><p>Interest<br>- 4-8% yearly <br>- Converted</p></li></ul><h2 id="investment-agreement-2739" class="group relative whitespace-pre-wrap -ml-2 pl-2 scroll-mt-20 sm:scroll-mt-5"><a href="#investment-agreement-2739" class="absolute top-1 -left-5 opacity-0 border-0 group-hover:opacity-100" aria-hidden="true" tabindex="-1" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none" target="_blank" rel="noopener noreferrer"><div class="w-6 h-6 text-slate-500 ring-1 ring-slate-900/5 rounded-md shadow-sm flex items-center justify-center hover:ring-slate-900/10 hover:shadow hover:text-slate-700 dark:bg-slate-700 dark:text-slate-300 dark:shadow-none dark:ring-0"><svg class="w-4 h-4" viewBox="0 0 24 24" fill="none" stroke-width="1.5" stroke="currentColor" aria-hidden="true"><path d="M13.19 8.688a4.5 4.5 0 011.242 7.244l-4.5 4.5a4.5 4.5 0 01-6.364-6.364l1.757-1.757m13.35-.622l1.757-1.757a4.5 4.5 0 00-6.364-6.364l-4.5 4.5a4.5 4.5 0 001.242 7.244" stroke="currentColor" stroke-linecap="round" stroke-linejoin="round"></path></svg></div></a>Investment Agreement (<a target="_blank" rel="noopener noreferrer nofollow noopener noreferrer" href="https://www.youtube.com/watch?v=7ECXBk7MXGI&#x26;t=1659s" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none">27:39</a>)</h2><ul><li><p>Should you divide the investment into several tranches ? <br>Do you need all equity at once ?</p></li><li><p>Warranties ? <br>- Should reflect the due diligence (if any) on the date of the agreement <br>- Fundamental and "ordinary" warranties + avoid warranties that you are uncertain of</p></li><li><p>Remedies :<br>- Repayment ? From the company or the founders ? <br>- Increase ownership ? More control ? <br>- Limited in time ?</p></li></ul><h2 id="shareholders-agreement-3045" class="group relative whitespace-pre-wrap -ml-2 pl-2 scroll-mt-20 sm:scroll-mt-5"><a href="#shareholders-agreement-3045" class="absolute top-1 -left-5 opacity-0 border-0 group-hover:opacity-100" aria-hidden="true" tabindex="-1" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none" target="_blank" rel="noopener noreferrer"><div class="w-6 h-6 text-slate-500 ring-1 ring-slate-900/5 rounded-md shadow-sm flex items-center justify-center hover:ring-slate-900/10 hover:shadow hover:text-slate-700 dark:bg-slate-700 dark:text-slate-300 dark:shadow-none dark:ring-0"><svg class="w-4 h-4" viewBox="0 0 24 24" fill="none" stroke-width="1.5" stroke="currentColor" aria-hidden="true"><path d="M13.19 8.688a4.5 4.5 0 011.242 7.244l-4.5 4.5a4.5 4.5 0 01-6.364-6.364l1.757-1.757m13.35-.622l1.757-1.757a4.5 4.5 0 00-6.364-6.364l-4.5 4.5a4.5 4.5 0 001.242 7.244" stroke="currentColor" stroke-linecap="round" stroke-linejoin="round"></path></svg></div></a>Shareholders' Agreement (<a target="_blank" rel="noopener noreferrer nofollow noopener noreferrer" href="https://www.youtube.com/watch?v=7ECXBk7MXGI&#x26;t=1845s" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none">30:45</a>)</h2><ul><li><p>Regulations on transfer of shares<br>- First refusal<br>- Drag-along<br>- Tag-along</p></li><li><p>Decision making <br>- Aims to "adjust" the parties' decision making and provide protection for smaller owners <br>- Should the investor have a right to block certain decisions (veto) ? <br>- What kind of decisions shall be subject to the provisions ? <br>- Is it possible to achieve the desired protection with the less intrusive provisions</p></li><li><p>Vesting, pay attention<br>- Should the founders have an obligation to work in the company ? <br>- For how log and to what extent ? <br>- What happens if a founder ceases to work ? <br>- Deviate the terms of bad and good leaver</p></li><li><p>Put-option ? <br>Right for the investor to transfer shares to founders or other shareholders in case of a trigger event</p></li></ul>

Fundraising from a legal POV (SUP)

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