In 2019, Dutch start-ups raised EUR 1.4 billion in venture capital (VC); double the amount of the year 2018. Partly due to the COVID-19 pandemic and continuing low interest rates, Dutch tech start-ups alone raised almost EUR 1.7 billion in venture capital, EUR 300 million more than in 2019.
VIOTTA’s lawyers have gained years of experience at international firms and in the business community in the Netherlands and abroad in mergers & acquisitions, joint ventures, private equity, financing and the associated corporate aspects.
In addition to advising established companies at home and abroad, VIOTTA focuses on advising start-ups and investors in start-up companies.
Financing & start-up
A start-up often goes through several financing rounds. When the company is started up, it may be financed by one’s own funds or by funds invested by family members. The next step is an investment from Angel Investors. These are individual investors who understand your business. Subsequently banks, (pre-) Seed Funding parties and venture capital investment companies often enter the picture.
VIOTTA’s lawyers provide advice to both companies and investors in companies. We are pleased to assist you with the incorporation of your company, advise you regarding the legal structure and assist you during investment rounds.
The start of your company immediately raises important questions. What legal form is best for your business? What are your liabilities? Which tax advantages are you entitled to? VIOTTA helps you with the incorporation of, for example a private limited company (B.V.) and advises you in regard to the right legal structure. We also provide advice on the drawing up of the following documents:
- General Terms and Conditions
- shareholders’ agreement
- finance agreement
- convertible loan agreement
- cooperation agreement
- distribution agreement
- non-disclosure agreement
- licensing agreement
Remuneration of employees
Your company is growing and you need (specialised) staff, such as a programmer or a CFO. Should you offer them an employment contract or a contract for services? What are the legal implications of this and what are the requirements? What “incentives” can you offer your staff? Will you opt for (options on) shares or warrants? Or do you prefer so-called Stock Appreciations Rights (SARs)? We are pleased to advise you. We can also advise you on the incorporation of a Stichting Administratiekantoor (Trust Office incorporated in the form of a foundation; STAK), Incentive Schemes and Stock Option Plans for your employees.
Negotiating with professional financiers
Professional investment companies, such as venture capital (VC) funds, invest money and often contribute knowledge as well. At this stage, it is important what valuation you give your company, will you negotiate the deal terms in a term sheet, and can a due diligence be conducted? Will you offer the investor a portion of your shares in exchange for an investment and, if so, through a separate class of shares, such as (cumulative) preference shares? VIOTTA’s lawyers provide you with advice regarding the aspects of various types of financing agreements and will be pleased to assist you in negotiating these agreements.
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