After you have agreed on the term sheet (signed or not), the investor will start the final parts of the due diligence while the subscription agreement and shareholders’ agreement (Norwegian: aksjonæravtale) are drafted. When the due diligence is complete it’s time to sign the subscription agreement and shareholders’ agreement.
When you join forces with your co-founders to start a new business, legal stuff is probably one of the last things you want to spend time on – especially the sometimes sensitive subject of commitment, cooperation and ownership. Nevertheless, agreeing on these topics from day one may be save you a lot of arguments and headache down the road. That’s why you should have a founder’s agreement.
Our term sheet is a balanced and standardized term sheet for your seed round. Both VC firms, angel investors, entrepreneurs and lawyers have been involved in the process of creating this new Nordic standard.
One might think that employments is one of those few areas where standard agreements already exist. The law is pretty strict on what can and cannot be agreed between employer and employee, there are lots of legal precedent cases. (more…)