Venture deals

The investor forms a request for documents and information, on the basis of which the startup collects a data room. The investor team checks the data and clarifies the necessary information from the startup. At this stage, the investor has a detailed idea of the value of the company and the main risks.

The parties determine the structure of the transaction, its basic conditions and formalize the intention to conclude a transaction on the agreed terms. An agreement on the main terms of the transaction can be signed before or after due diligence. As a rule, a signed term sheet is more of a work plan than a guarantee of a contract.

The set of documents may vary depending on the jurisdiction and structure of the transaction.

A startup may be required to provide detailed disclosure of circumstances - major contracts, information about the team and product, existing contractual and other risks.

The investor has the right to put forward conditions that must be met before closing the transaction (pre-closing conditions) or within a limited period after closing (post-closing conditions). Failure to comply with the conditions may threaten to delay the tranche or terminate the transaction.