Venture capital investments are becoming increasingly popular and predominant in Singapore and Southeast Asia, and this trend is expected to continue. Each investment may be unique, but there is no need for founders and investors (and their respective advisors) to invest time and generate costs by preparing and negotiating any investment from fund to com- In order to reduce transaction costs and reduce friction during the trading process, Venture Capital Investment Model Agreements (VIMA) offer a series of standard agreements for early-stage start-up and financing operations. This agreement is intended to be used when a start-up wants to issue shares to a new investor as part of a seed investment cycle in Southeast Asia. It defines the investment mechanisms and guarantees that must be given by the startup. It provides for the investment of ordinary shares of the company in a tranche without conditions (with the exception of those relating to the authorizations of the companies). A roadmap defines the main conditions under which an investor (or group of investors) will subscribe to the shares of a company. It also defines the ongoing rights and obligations of investors, founders and the company with respect to that company. Apart from certain provisions, a Term Sheet is a non-binding agreement and the parties concerned must enter into binding agreements to bring its terms into force. This type of confidentiality agreement is based on the premise that an entity provides a potential investor with confidential information about itself. It should be noted that it is not uncommon for VCs to refuse to enter into confidentiality agreements. This agreement is intended to be used when a company wishes to issue shares to a new investor.
It defines the investment mechanisms and guarantees that must be provided by the company. This is a simple underwriting agreement that should be used when a company receives capital from friends and family investors. It provides for an investment of common shares of the company in an unconditional tranche. No document or information provided to VIMA should be construed as legal advice (including for facts or scenarios described in such documents or for assumptions relating to such documents). VIMA`s documents and information are only a starting point and the relevant documents must be adapted to the specific legal and business requirements of the proposed transaction. In addition, documents may be required for the proposed transaction. Before using these documents, legal and tax advice should be obtained. Neither the Singapore Academy of Law nor any of the working group members or contributors assume responsibility for the content of the documents provided by VIMA. Please note that VIMA does not provide the full range of options available or appropriate for early funding rounds, which often depend on the transaction or the parties involved.
Depending on the circumstances, the parties may therefore have to adapt certain conditions in the documents to their needs. . . .