We can - and should - do is avoid unnecessary mistakes. When it comes to startup investing, having good documentation and agreements is one of the first things that avoids unnecessary trouble.
Term Sheet (Aiesopimus): The term sheet is the document that outlines the terms by which an investor (angel or venture capital investor) will make a financial investment in your company. Term sheets tend to consist of three sections: funding, corporate governance and liquidation.
Shareholders Agreement (Osakassopimus): Contract between the owners (shareholders) of a firm, defining their mutual obligations, privileges, protections, and rights, and usually comprising the firm's articles of association or bylaws. Main content including: Management of the corporation, Procedural matters, Covenants of the corporation, Dealing with shares and Provisions for the resolution of any future disputes between shareholders.
Syndication agreement (Ryhmäsijoitussopimus): The purpose of Joint Investment Agreement is to agree the objectives and procedures, which the Parties shall follow while together preparing the Investment into the Company. The Joint Investment Agreement defines the tasks and the role of the Lead Investor, and states other matters between the Parties regarding the Investment.
Sweat Equity (Osaamispääomasijoitus): Is a party's contribution to a project in the form of effort and toil, as opposed to financial equity such as paying others to perform the task.
Option Agreement (Optiosopimus): An agreement between two parties that provides one of the parties with the right but not the obligation to buy, sell or obtain a specific asset at an agreed upon price at some time in the future.
Convertible note (Vaihtovelkakirja): Is an investment vehicle often used by seed investors investing in startups who wish to delay establishing a valuation for that startup until a later round of funding or milestone. Convertible notes are structured as loans with the intention of converting to equity.
These agreements can easily and cost-efficiently be tailored by contacting the law firm mentioned in respective agreement. FiBAN members also receive several benefits from our law related partners.