The collaboration between investor and company is legally regulated by a participation agreement. It is common for the investor to propose a participation agreement. What should I consider when negotiating the agreements, and what should I always know when entering into discussions with investors?
Dr. Martin Sundermann from Osborne Clarke gives you insights and tips on what typical participation agreements look like and what design options are available:
- What are typical elements?
- What are typical formulations?
- What is negotiable?
- Dilution protection, liquidity preference, co-sale obligation and other details
