For start-ups offering innovative solutions and pursuing growth targets, securing investment is a key milestone for achieving those targets. Venture capital funds (VCs) that invest in start-ups under various strategies and expectations tend to govern their legal relationships with the start-ups they invest in through several agreements, primarily a shareholders' agreement. Investment documentation must be designed taking into account multiple factors such as the size of the start-up, the investment amount and the sector in which it operates. Accordingly, agreements financing start-ups — in particular share subscription and shareholders' agreements, convertible note agreements and SAFEs — must be drafted in line with ecosystem dynamics and Turkish law.
Other key matters include the employee share option agreements (ESOP) that start-ups will sign with their employees, the legality of the start-up's business activity, and its corporate structure. For venture capital investments and start-ups, Aksan Law Firm provides:
- Drafting of investment documentation, including term sheets, share subscription agreements and shareholders' agreements; organisation of the closing general assembly; and end-to-end management of the investment process;
- Drafting of financing agreements structured as a hybrid of debt and equity, such as convertible notes and SAFEs;
- Legal due diligence on the start-up that the investor intends to invest in, with a view to identifying the legal risks to which it is exposed;
- Drafting of employee share option plans and option agreements;
- Advisory services to legally structure the start-up so that it is investment-ready.
These services are provided by our team.
